FAR and Woodside on track to finalize Sangomar deal

Australia’s oil and gas company FAR Limited is on track to complete the sale of its interest in the RSSD project, which contains the Sangomar field, to Woodside in the coming weeks.

FAR Limited said on Monday it has satisfied the condition precedent for the sale of its interest in the RSSD project to Woodside relating to the termination of a third-party contract.

FAR also advised that it has received formal notification from the Senegalese Minister of Petroleum and Energies that it approves the transfer of FAR’s RSSD interest to Woodside.

Accordingly, FAR and Woodside are moving towards attending to the various outstanding completion related matters with completion targeted for the coming weeks.

FAR concluded it will keep the market updated in relation to any material developments in this regard.

To remind, FAR’s shareholders in late April 2021 approved the sale of the company’s Senegal RSSD project to Woodside with 97.25 per cent of the shareholders backing the sale and 2.75 per cent of shareholders voting against it.

The move brough to a conclusion a long sequence of events in which several companies attempted to buy either FAR’s stake in the RSSD project or the entire company.

As the company was working to finalise the deal with Woodside, it had announced the departure of its current and the appointment of a new chief financial officer in early May 2021.

When it comes to the development of the Sangomar project, Chinese shipyard Cosco Shipping Heavy has already started working on a conversion of a very large crude carrier (VLCC) into floating production storage and offloading (FPSO) vessel for the Woodside-operated project.

The vessel had been named FPSO Léopold Sédar Senghor and the conversion will take around two years. First oil production from the FPSO is targeted for 2023.