ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), on Wednesday announced the acquisition of Australian firm FAR Ltd''s stake in the USD 4.2-billion Sangomar oil project off Senegal''s shore for USD 45 million.
In a statement, OVL said it has reached an agreement with FAR Senegal RSSD SA, a wholly-owned subsidiary of FAR Limited (FAR), for acquiring 13.6667 per cent participating interest in exploitation area (Sangomar Field) and 15 per cent participating interest in remaining contract area (Exploration Area) of Rufisque, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Block, Offshore Senegal.
Woodside Energy (Senegal) BV (Woodside), Capricorn Senegal Limited (Cairns) and Le Societe des Petroles du Senegal (Petrosen – the national oil company of Senegal) are other partners in the RSSD Block.
"The acquisition by ONGC Videsh is subject to satisfaction of customary conditions precedents, including approvals of Senegal regulatory authorities, FAR shareholders'' approval, non-exercise / waiver of pre-emption by joint venture partners and termination of certain third party agreement," it said.
The Sangomar Field, currently under development, is located in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin (MSGBC Basin), Offshore Senegal, covering an area of 772 sq kms and is planned to go on production in 2023 under Phase-1 development.
"Total investment involved, including the development cost, until the first oil is expected to be around USD 600 million," it said.
Woodside is the operator of the block and has recently exercised its pre-emption rights to acquire the participating interest held by Cairns in the RSSD Block.
Post completion of the acquisition of Cairns stake by Woodside, it will hold 68.3333 per cent participating interest in Sangomar Field and 75 per cent participating interest in exploration area, while Petrosen will hold 18 per cent participating interest in Sangomar Field and 10 per cent participating interest in exploration area of the RSSD Block.
"The completion of the present transaction would mark ONGC Videsh entry in Senegalese offshore in a significant project under development and is consistent with its strategic objective of adding high impact exploration and near-term production assets to its existing E&P portfolio," the statement said.