Woodside Set to Take Cairn Stake in Senegal Block
Australia's Woodside has struck a deal to acquire the 40% stake of London-listed Cairn in the Rufisque, Sangomar and Sangomar Deep (RSSD) production-sharing contract (PSC) off Senegal, the companies have said.
Russia's Lukoil made a bid for Cairn's interest in the project in July, offering to pay $400mn. But Woodside, which already serves as the PSC's operator with a 35% stake, used its pre-emptive rights to the interest on the same terms and conditions. The transaction, subject to Senegalese government approval, is expected to close in the fourth quarter.
The RSSD block is 2,212 km2 in size, some 80 km from shore covering waters 800-2,175 metres deep. It contains the Sangomar and Fan oil and gas discoveries.
The project's partners, which also include Senegal's state-owned Petrosen and Australia's Far, took a final investment decision on development in January. First oil is expected in 2023 and output is expected to reach 100,000 b/d. The field's gas will also be delivered to shore.