ASX listed FAR Ltd subsidiary FAR Senegal RSSD SA and its Sangomar RSSD has reported that the joint venture partners have executed documentation confirming State oil company Petrosen’s decision to increase its stake in the Sangomar Exploitation Area from 10% to 18%.
This has affected the stake of the other partners with FAR’s stake in the Sangomar Exploitation Area decreasing from 15% to 13.67%.
FAR adds it has captured the impact of this expected action by Petrosen in economic modelling of the project in its earlier announcements to the market.
Petrosen is now required to reimburse the other RSSD venturers their pro-rata share of the 8% of expenses relating to the Sangomar Exploitation Area incurred since 8 January 2020. As at the end of June 2020, the share due to FAR is US$4.79m.
FAR’s Managing Director, Cath Norman said, “FAR has long planned for Petrosen’s interest accretion and it has been reflected in our modelling and communications. The FAR Board continues to pursue a sale of all or part of FAR’s stake in lieu of an alternate financing option.”
Just this week Woodside exercised its right to pre-empt on the same terms and conditions as the proposed sale of Cairn’s interests in the Sangomar field offshore Senegal to Lukoil.