Lukoil to acquire Cairn Energy’s 40% stake in RSSD project offshore Senegal
PJSC Lukoil has agreed to acquire Cairn Energy PLC’s 40% interest in the Rufisque, Sangomar, and Sangomar Deep (RSSD) project offshore Senegal for $300 million in cash.
The agreement also provides for potential bonus payment to Cairn of up to $100 million after the commencement of production.
The blocks, covering 2,212 sq. km, lie on the deepwater shelf of the Republic of Senegal 80 km from shore with the sea depth of 800-2,175 m and include Sangomar and FAN fields.
Final investment decision on Sangomar field was taken early this year and field development has begun (OGJ Online, Jan. 10, 2020). Lukoil estimates field recoverable hydrocarbon reserves of 500 million boe. First oil is expected in 2023 with designed production level of 5 million tons/year of crude oil.
The RSSD project is being implemented under a production sharing agreement whereby Woodside is operator with 35%. Other partners are FAR (15%) and Petrosen (10%).
The transaction is subject to customary conditions, including the approval by the government of the Republic of Senegal.
Subject to JV partner and government of Senegal consents, the deal is expected to close in this year’s fourth quarter with an effective date of Jan. 1.
