ONGC Videsh (OVL) has signed definitive binding agreements with Australia’s FAR for acquiring 13.6667 percent participating interest in exploitation area of Sangomar field.
OVL will also acquire 15 percent participating interest in the remaining contract area of Rufisque, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Block in Senegalese offshore.
The acquisition involves an upfront consideration of USD 45 million with customary adjustments, including the opening working capital as of January 2020 and the cash calls paid or to be paid from January 2020 onwards until completion (excluding any default interest paid/payable by FAR for any delay in cash call payments). This will be payable upon completion.
Contingent payments payable annually (capped at USD 55 million) depending upon the Brent Oil price from first oil until the earlier of three years from first oil or 31 December 2027.
The total investment involved including the development cost until the first oil is expected to be around USD 600 million.
The completion of the present transaction will 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 exploration and production portfolio.
Woodside Energy (Senegal) BV (Woodside), Capricorn Senegal (Cairns) and Le Société des Pétroles du Sénégal (Petrosen – the national oil company of Senegal) are other partners in the RSSD Block.
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 km and is planned to go on production in 2023 under Phase-1 development.