Australia's FAR Expects Conoco Ruling Mid-2018

Australian independent FAR has reported a 1H2017 loss of A$22.3mn, up 99% year on year due to higher exploration costs and foreign exchange losses.

The increase in exploration expenses relate to the Senegal drilling campaign, exploration drilling expenses and pre-development work and Gambia pre-award costs, it said September 5. The foreign exchange loss is primarily the result of the revaluation of the US dollar bank account.

In its Senegal arbitration referral, FAR said that its proceedings against ConocoPhillips "may take in the order of twelve months to reach a determination, at which point [FAR] will be in a position to make any decision in relation to any award relating to its pre-emption rights."

In June 2017, FAR referred Conoco to the International Chamber of Commerce in Paris, an arbitration tribunal, with the aim of resolving its dispute in respect to the sale of Conoco's 35% interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) deepwater blocks offshore Senegal to Australia's Woodside Petroleum. FAR contends that Conoco did not follow the correct procedures with respect to notifying its partners of their rights to pre-empt Woodside. Cairn, which operates the RSSD blocks, recently announced its 11th successive oil discovery on the acreage.

Shardul Sharma