PERTH, Australia -- Woodside Energy has agreed to buy ConocoPhillips’ entire interests offshore Senegal for $350 million, plus a completion adjustment.
Under the transaction, which could go through by year-end (subject to ratification by Senegal’s government, Woodside will acquire 100% of the shares in ConocoPhillips Senegal which has a 35% stake in a production sharing contract (PSC) covering the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore exploration blocks.
The terms provide an option for Woodside to operate the future development of any resource – Cairn Energy is the current operator.
The PSC includes the SNE and FAN deep water oil discoveries – Woodside estimates that SNE holds 560 MMbbl of recoverable oil.
CEO Peter Coleman said the acquisition provides the company with a significant position in an under-explored and prospective emerging oil province. “We are taking advantage of our balance sheet to acquire a world-class asset that fits well with our capabilities, offers significant future upside in exploration and line-of-sight to near term oil production.
“It builds on our agreement to acquire a 65% interest in the AGC Profond exploration block located to the south in the Senegal-Guinea Bissau joint development zone and extends our regional focus in West Africa.”
Woodside, he added, “will bring to the joint venture expertise in deepwater drilling, development and operation of subsea infrastructure and floating production storage and offloading vessels.”
“This is an important milestone for ConocoPhillips as we progress our phased exit from deepwater exploration in West Africa,” said Matt Fox, evp, Strategy, Exploration and Technology.