A little more of the same...............

viewFAR Ltd

Tharun George, CFA

09:24 Mon 13 Jan 2020

FAR and RSSD joint venture approves Sangomar field development

The Sangomar Field Development Phase 1 has been approved by the RSSD joint venture.

Woodside Petroleum Limited (ASX:WPL) is operator of the RSSD joint venture

FAR Ltd (ASX:FAR) and its partners that form the RSSD joint venture have approved the Sangomar Field Development Phase 1 in Senegal.

The RSSD has now entered the execute phase of activities for Sangomar, which is one of the largest offshore oil discoveries of the last 10 years.

This approval follows the grant of the Exploitation Authorisation by the Government of Senegal last week.

First oil targeted in early 2023

The field will be developed in a series of phases, with first oil targeted in early 2023.

Phase 1 of the development will target an estimated 231 million barrels of oil resources from the lower, less complex reservoirs, and an initial pilot phase in the upper reservoirs.

This project is expected to make FAR one of the largest ASX-listed oil producers.

Woodside operator of RSSD JV

The Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) JV comprise a subsidiary of Woodside Petroleum Limited (ASX:WPL), a subsidiary of Cairn Energy PLC (LON:CNE), FAR Ltd and Petrosen (the Senegal National Oil Company).

Woodside, as JV operator, has executed a purchase contract for the floating production storage and offloading (FPSO) facility and issued notices to proceed for the drilling and subsea construction and installation contracts.

Project contractors

Key contractors are:

• MODEC, Inc for the purchase of an FPSO with an oil processing capacity of 100,000 bbl/day;
• Subsea Integration Alliance (a non-incorporated alliance between Subsea 7 and OneSubsea) for the construction and installation of the integrated subsea production systems and subsea umbilicals, risers and flowlines; and
• Diamond Offshore for two well-based contracts for the drill rigs Ocean BlackRhino and Ocean BlackHawk.

Woodside CEO Peter Coleman said the Sangomar Development was a major pillar of Woodside’s growth strategy with substantial upside from potential future phases.

He added: “We look forward to progressing the project towards first oil in early 2023 and expect that our experience in offshore FPSO developments will support its delivery on cost and schedule.

“We are grateful for the ongoing support of the Government of Senegal and will be working with all stakeholders to ensure that the country’s first oil project delivers enduring benefits to its people.”

Quick facts: FAR Ltd

Price: 0.044 AUD

ASX:FAR

Market: ASX

Market Cap: $279.48 m

Follow

Aug '19Sep '19Oct '19Nov '19Dec '19Jan '200.040.050.060.070.08080MZoom1m3m6m1yFromJul 12, 2019ToJan 12, 2020Highcharts.comWednesday, Dec 11, 2019● Share price: 0.041● Volume: 57 341 542

View company profile