ONGC enters Senegal’s Sangomar oilfield

Indian state-owned oil and gas company ONGC has agreed to acquire FAR’s participating interest in the Sangomar oilfield offshore Senegal, the Australian firm said on Wednesday.

The sales and purchase agreement includes FAR’s 13.67% stake in the Sangomar exploitation area and 15% stake in the  Rufisque, Sangomar, and Sangomar Deep (RSSD) offshore concession, which holds the Sangomar field.

Australia’s Woodside Petroleum, which leads the RSSD joint venture, said on Wednesday it would consider exercising its pre-emptive rights to acquire FAR’s interest.

If ONGC’s deal goes ahead, it will be worth up to USD 166.6 million, which includes an initial payment and reimbursement of FAR’s share of working capital for the RSSD Project from January 1 of this year, as well as contingent payments.

In July, Russia’s Lukoil took a 40% stake in the RSSD development, paying as much as USD 400 million.

In January, the RSSD joint venture reached an agreement to develop the project’s first phase with an investment of USD 4.2 billion. The project will include an 100,000-bpd FPSO (pictured in an artist’s rendering) supplied by Japanese company Modec.