FAR disputes ConocoPhillips Senegal asset sale
Oil and gas exploration and production company FAR Ltd. is disputing ConocoPhillips’ sale of three exploration blocks offshore Senegal to the Australian energy company Woodside.
Namely, ConocoPhillips said late last week it had completed the sale of 35% shares in three exploration blocks offshore Senegal, Rufisque, Sangomar and Sangomar Deep. These blocks contain the SNE and FAN deep-water oil discoveries.
Woodside also confirmed on Monday the transaction of ConocoPhillips’ working interest in three offshore blocks was complete.
According to ConocoPhillips, the total sales price of the transaction was approximately $440 million, including net customary adjustments of approximately $90 million.
However, FAR noted on Monday that completion of the transaction between ConocoPhillips and Woodside was subject to the rights of partners to pre-empt and Senegal Government approval. The partners in these three blocks are FAR, with 15% working interest, Cairn Energy, with 40% interest, and Petrosen (the Senegalese National Oil Company), with 10% interest.
FAR also added it believes a valid pre-emptive rights notice has not been issued to the JV partners by ConocoPhillips and FAR has invoked its right to resolve this dispute in accordance with the Joint Operating Agreement.
While ConocoPhillips’ Matt Fox, executive vice president, Strategy, Exploration and Technology, said in the statement confirming the completion of the transaction that the company had a ‘cooperative relationship with the Senegalese government’, FAR stated it was not aware that the Government of Senegal has advised ConocoPhillips of its approval of the transaction.
“FAR continues to reserve its rights,” the company concluded.
Offshore Energy Today Staff