Australia-headquartered FAR Ltd. said on Jan. 20 it has lined up loan funding for its share of the $4.2 billion Sangomar project, Senegal’s first oil development block, and made a final decision to proceed.
FAR, a minority partner in the project, said it received credit approvals for an underwritten $300 million senior secured reserve-based lending facility by Macquarie Bank, BNP Paribas and Glencore.
The Senegal government recently gave the greenlight for the project, which is expected to produce 231 million barrels (MMbbl) of oil resources in its initial phase of development and strike first oil in the next three years.
The project is a joint venture (JV) between Woodside Petroleum, Cairn Energy Plc, FAR and Senegal’s state-owned Petrosen.
Woodside, as project operator, has issued a notice to proceed for the drilling and subsea construction and installation contracts, FAR said.
The partners in the project are eager to push ahead even as they await the outcome of an arbitration over a dispute.
FAR contends it was denied its right to pre-empt the sale of a 35% stake in the Sangomar field by ConocoPhillips to Woodside in 2016. The dispute is expected to be resolved early this year.
Recommended Reading
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Sliding Oil Prices Could Prompt Permian E&Ps to Cut Capex
2024-12-03 - A reduction in the rig count would also slow the growth of natural gas output from the region, benefitting gassy Gulf Coast players, according to Enverus.
What Chevron’s Anchor Breakthrough Means for the GoM’s Future
2024-12-04 - WoodMac weighs in on the Gulf of Mexico Anchor project’s 20k production outlook made possible by Chevron’s ‘breakthrough’ technology.