23rd Dec 2020 12:07
(Alliance News) - Woodside Petroleum Ltd on Wednesday said its subsidiary in Senegal has completed the acquisition of Capricorn Senegal Ltd's entire interest in the Rufisque offshore, Sangomar offshore and Sangomar Deep offshore joint venture.
Capricorn Senegal is a wholly owned subsidiary of Cairn Energy PLC, the Edinburgh-based oil & gas exploration and development company.
The Perth, Australia-based petroleum exploration and production company said the purchase price was USD300 million plus a working capital adjustment of USD225 million, which included a reimbursement of Capricorn Senegal's development capital expenditure incurred since the start of 2020.
Additional payments of up to USD100 million are contingent on commodity prices and timing of first oil, Woodside Petroleum said.
Following the acquisition, Woodside said its interest in the joint venture has increased to 68% for the Sangomar exploitation area and to 75% for the remaining evaluation area. Woodside Petroleum said its interest will further increase to 82% for the Sangomar exploitation area and to 90% for the remaining evaluation area, subject to completion of the acquisition announced on December 3.
"The completion of the transaction with Capricorn Senegal has simplified the structure of the joint venture ahead of our planned equity sell-down in 2021. The Sangomar development is an attractive, de-risked asset that offers near-term production to potential buyers," said Chief Executive Peter Coleman.
Russia's NK Lukoil PAO had struck an agreement to buy Cairn's 40% stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore PSC back in July. Lukoil was to pay USD300 million for the stake with further contingent consideration of up to USD100 million once production starts.
However, Cairn Energy, which is focused on North West Europe, the Atlantic Margin and the Mediterranean, then said in August that Woodside had decided to pre-empt the deal on the same terms and conditions as Cairn's agreement with Lukoil.
On Thursday last week, Cairn said it plans to return USD250 million, through a 32 pence per share special dividend, to shareholders following the sale of its Senegal interests.
The company will hold a general meeting to approve the return of cash and the share consolidation on January 8.
Woodside Petroleum shares closed 1.1% higher in Sydney on Wednesday at AUD22.57 each. Cairn shares were trading 20% higher in London at 199.30 pence each.
By Evelina Grecenko; [email protected]
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