ONGC Videsh Acquires FAR’s Stake in Senegal Deep Offshore
ONGC Videsh announced its entry into Senegal’s offshore exploration area through a 13.67% participating interest in the Sangomar field and a 15% participating interest in remaining contract area of Rufisque, Sangomar Offshore and Sangomar Deep Offshore Block.
The Sangomar Field is located in deep waters offshore Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin,comprising an area of 772 km2 and scheduled to yield first production in 2023 under Phase 1 development. Woodside is the current operator of the field.
With total investment until first oil estimated at $600 million, the acquisition involves an upfront consideration of $45 million. According to the company’s press release, the deal also involves contingent payments due annually (capped at $55 million) based on the price of Brent Crude.
The acquisition is subject to customary conditions, including the approval of the Senegalese regulatory authorities, the approval of FAR shareholders, the non-exercise/waiver by the joint venture partners of the pre-emption, and the termination of certain third-party agreements.