FYI, page-9

Woodside Petroleum advances towards Senegal oil production

Woodside Petroleum has taken a further significant step towards its first oil production project in Senegal, with its SNE joint venture partners committing to starting engineering and design work on a plant that would start up in 2022.
The first phase of the project will target 230 million barrels of oil resources off the coast of the West African country, producing as much as 100,000 barrels a day.
Woodside chief executive Peter Coleman said the partners plan to progress the project "towards the earliest possible commercialisation of the discovered resources". Completing the design work is intended to lead to a final investment decision, targeted for the middle of 2019.

Production is targeted in 2022 from the SNE oil project off the coast of Senegal. Supplied
"We are also excited to be moving forward on the SNE development as it is a key pillar of Horizon Two of our growth strategy," Mr Coleman said.
The project, expected to cost about $US2 billion, has been clouded by an ongoing arbitration process involving Woodside and junior venture partner FAR Ltd., which is disputing the $US430 million sale of former partner ConocoPhillips's stake to Woodside. The dispute has raised concerns about potential hurdles for financing of the project, which needs to be in place in time for the final go-ahead.



A contract for subsea work was awarded to Subsea Integration Alliance, while further design contracts are expected to be awarded in early 2019, Woodside said. The award of the contract follows the approval from the Senegal minister of petroleum for Woodside to take over the role of operator of the project from London-listed Cairn Energy, and the submission of a development plan to the government.
Meanwhile, Woodside is facing further troubles at its Sunrise gas project in the Timor Sea after the Timor-Leste president blocked a government proposal to increase its stake in the venture to more than 20 per cent by buying out the stakes held by ConocoPhillips and Shell.
According to a Reuters report, President Francisco Guterres told journalists last week he had vetoed the decree to "prevent the over-stretching of the Petroleum Fund's direct investment rules and policies". He has called for the proposal to be revised, the news agency said.
The move puts in doubt the Timor-Leste government's deal to buy out Conoco's 30 per cent stake in Sunrise for $US350 million and its similar agreement to buy Shell's stake for $US300 million.