Woodside buys ConocoPhillips’ Senegal oil interests for US$430mn

A binding Purchase and Sale Agreement (PSA) has been entered by Woodside Petroleum Ltd. with ConocoPhillips’, with Woodside set to acquire all of ConocoPhillips’ Senegal interests for the purchase price of US$350 millionplus net customary adjustments of approximately US$80 million.

Woodside will buy 100% of the shares in ConocoPhillips Senegal B.V. which holds a 35% working interest in a Production Sharing Contract with the Government of Senegal covering three offshore exploration blocks:Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore.

The Production Sharing Contract includes the SNE and FAN deep water oil discoveries. SNE is one of the largest global deepwater oil discoveries since 2014. Woodside estimates that the SNE discovery contains 560 MMbbl of recoverable oil.

Woodside CEO Peter Coleman said the acquisition aligned with the company’s growth strategy by providing a significant position in an under explored and highly prospective emerging oil province. The SNE and FAN discoveries opened up the basin, and recently completed appraisal work has proven up high-quality resources.

“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.

“We look forward to working with the Government of Senegal and joint venture participants Cairn Energy, FAR Limited, and Petrosen, the Senegal National Oil Company, to progress the commercial development of SNE and any future discoveries,” he said.

Completion of the PSA is subject to satisfaction of customary conditions, including Government of Senegal approval and pre-emption and is targeting close by year-end 2016.