FAR-Woodside arbitration ruling expected by yearend

The International Chamber of Commerce is expected to make a ruling by yearend in the arbitration between FAR Ltd. and Woodside Petroleum Ltd. over Woodside’s equity in the SNE oil field development project offshore Senegal.

The International Chamber of Commerce is expected to make a ruling by yearend in the arbitration between FAR Ltd. and Woodside Petroleum Ltd. over Woodside’s equity in the SNE oil field development project offshore Senegal.

FAR said it its quarterly report that a hearing on preliminary issues took place in Paris on July 8-10 before three arbitrators. Written post-hearing briefs are due from FAR and Woodside by late September.

FAR brought the arbitration over the sale by ConocoPhillips of 35% interest in the SNE project in 2016 to Woodside for $350 million.

FAR, which was an original member of the SNE consortium, contended that it was denied preemptive rights over the ConocoPhillips stake. Woodside dismissed this claim as having no merit.

SNE is a deepwater oil discovery that has been confirmed with many appraisal wells to the point where development plans are now being considered in detail.

The current shareholding is Cairn Energy with 40%, Woodside 35% and operatorship of the development phase, FAR 15%, and Senegal national company Petrosen 10%.

FAR also said in its filing that the joint venture financing, led by Societe Generale in London, is moving ahead and is expected to be finalized in time for a final investment decision on the SNE development this year.

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