The spar between Woodside Petroleum and Far Ltd. continues, as Woodside says arbitration proceedings filed by Far have no merit.
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Woodside CEO Peter Coleman. |
Woodside backed up its no-merit comment by announcing that the Republic of Senegal’s Minister of Energy and the Development of Renewable Energy issued a ministerial order, which provides further confirmation of Woodside’s participation in the Rufisque, Sangomar and Sangomar Deep joint venture (RSSD JV).
The Rufisque, Sangomar and Sangomar Deep offshore production sharing contract (PSC) covers an area of about 7490sq km over the shelf, slope, and basin floor of the Senegalese portion of the productive Mauritania-Senegal-Guinea-Bissau Basin. The field is estimated to hold 560 MMbbl.
Yesterday (20 June), Far made a request to the International Chamber of Commerce in Paris to start arbitration proceedings to resolve the current joint operating agreement dispute regarding Far’s right to pre-empt the sale of ConocoPhillips’ interest in RSSD.
“Woodside does not believe that Far’s claim has any merit,” Woodside said in a statement. “As Far has apparently initiated arbitration proceedings, Woodside does not intend to make any further comment on the arbitration proceedings at this stage.”
In July 2016, ConocoPhillips and Woodside signed a deal that would see Woodside acquire all of Conoco’s Senegalese assets for US$430 million, including operatorship of RSSD JV. Three months later, Far disputed the deal.
Currently, Cairn Energy is the operator with 40% stake. Partners include Woodside (35%), Far (15%) and the Senegal National Oil Co., Petrosen (10%).
A three-year evaluation work plan was submitted by the partners to the government of Senegal in 2015. The JV expects to submit an outline timetable for development and an exploitation plan in 2018, a final investment decision within 12 months thereafter and first oil in the period 2021-2023.
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