Australian Woodside is expanding into Africa following the signing of a binding Purchase and Sale Agreement (PSA) for the acquisition of ConocoPhillips’ assets in Senegal.
Under the agreement, the company will buy all of ConocoPhillip’s interests in the West African country for US$350 million (£264.5 million), plus a completion adjustment of approximately US$80 million (£60.47 million).
“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,” Woodside CEO Peter Coleman, said.
ConocoPhillips Sells Assets To Woodside
With this acquisition, Woodside will also have access to the SNE and FAN deep water oil discoveries.
Both discoveries opened up the basin and recently completed appraisal work has proven up high-quality resources.
According to Woodside estimates, the SNE, one of the largest deep water discoveries since 2014, could contain 560 million barrels of recoverable oil.
The completion of the agreement is now subject to satisfaction of customary conditions, including the approval and pre-emption by the government of Senegal, which is scheduled to take place by the end of 2016.
Woodside Targets West Africa in Growth Strategy
According to Coleman, this acquisition is in line with Woodside’s growth strategy, as it provides the company with a significant position in an emerging oil province that remains underexplored.
“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,” he said.
“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 added.
“Woodside will bring to the joint venture expertise in deep water drilling, development and operation of subsea infrastructure and floating production storage and offloading vessels,” he stated further.