Woodside Takes $350M Stake Offshore Senegal

Published at 08:04AM - 31/10/16

Woodside Petroleum announced it has completed the acquisition of 100% of ConocoPhillip’s interests in Senegal.

According to a statement, the transaction was completed for a purchase price of US$350 million (£287.333 million) plus net customary adjustments of approximately US$90 million (£73.88 million).

“We acknowledge the work of ConocoPhillips in closing this deal. 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,” Woodside CEO Peter Coleman, said.

Woodside Takes $350M Stake Offshore Senegal

“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 the SNE and FAN discoveries,” he added.

The acquisition includes a 35% working interest in three offshore exploration blocks, which contain the SNE and FAN deep water oil discoveries, located offshore Senegal.

Woodside Takes $350M Stake Offshore Senegal
The Chevron-operated Wheatstone platform

As well as this, it includes the option for Woodside to operate any future development.

“SNE is one of the largest global deep water oil discoveries since 2014,” Woodside said when the deal was announced in July 2016.

Woodside Reviews Wheatstone LNG Costs

Meanwhile, Woodside announced on the same day that the Wheatstone liquefied natural gas (LNG) project was suffering a cost update.

According to a statement by the company, the initial view is that the cost update results in an increase in Woodside’s total capital costs of less than 8% in comparison to the previous guidance provided in February.

“It is within the range of outcomes expected at the time of the acquisition of Apache’s interest in the Wheatstone Joint Venture and can be funded by existing cash and undrawn debt facilities,” the company stated.

The project should produce first LNG from Train 1 in mid-2017, while Train 2 is expected to start production six to eight months later.

Wheatstone is expected to contribute with over 13 million barrels of oil equivalent per year (boepd) once both trains are fully operational.

So far, all construction and commissioning work is on schedule and under budget in preparation for the start-up, Woodside informed.