ConocoPhillips advances deepwater exploration exit with Senegal assets sale completion

October 31, 2016

ConocoPhillips has completed a transaction for the sale of its shares in ConocoPhillips Senegal BV, which holds a 35 percent interest in three exploration blocks offshore Senegal, to Australia’s Woodside Petroleum.

ConocoPhillips said on Friday that the total sales price of the transaction between its subsidiary and Woodside was around $440 million, including net customary adjustments of approximately $90 million.

To remind, the two companies agreed in July that Woodside would buy all of ConocoPhillips’ interests in Senegal, based on an effective date of January 1, 2016.

Matt Fox, executive vice president for Strategy, Exploration, and Technology at ConocoPhillips, said: “We are pleased to complete this transaction with Woodside. We experienced a transparent and cooperative relationship with the Senegalese government and appreciated their support throughout a very successful exploration and appraisal campaign.

“By completing this sale we are progressing our broader exit from deepwater exploration, which will further increase our capital flexibility and reduce the cost of supply of our portfolio.”

The three offshore exploration blocks, Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore, had a net carrying value of approximately $285 million as of Sept. 30, 2016.

With the acquisition of ConocoPhillips’ Senegal assets, Woodside will get access to the SNE and FAN deep-water oil discoveries. SNE is one of the largest global deepwater oil discoveries since 2014. Woodside estimates that the SNE discovery contains 560 MMbbl of recoverable oil (at the 2C confidence level, 100%).

Partners in the exploration blocks are Cairn Energy, FAR Limited, and Petrosen, the Senegal National Oil Company.