FAR (ASX) Ann: WPL: Senegal Reaffirms Completion of Transaction

Originally posted by bunclefester ↑

Hi Insaf,

This from my Energy News feed this morning - looks like at least 9 months
Energy News Bulletin - Far Pleads In Paris
FAR pleads in Paris
FAR (15%) has moved forward with arbitration in its dispute with ConocoPhillips over the sale of its 35% interest in the Rufisque, Sangomar and Sangomar Deep Joint Venture, offshore Senegal, to Woodside Petroleum.
Energy News Bulletin - Far Pleads In Paris
FAR recently moved to block Woodside's attempts to secure operatorship of the blocks and the SNE oil field development, a move Woodside said could delay field development from its schedule of first oil in the early 2020s.

Overnight the Melbourne-based junior requested the International Chamber of Commerce in Paris commence arbitration proceedings to resolve the joint operating agreement dispute.

FAR claims it should have been given the right to pre-empt the sale, while Woodside argues that its legal advice is that no right existed because it purchased ConocoPhillips' Senegalese business unit directly.

This morning Woodside said that Senegal's Minister of Energy and the Development of Renewable Energy had just issued a ministerial order that provided "further confirmation of Woodside's participation" in the JV.

While it is not commenting on FAR's initiation of arbitration proceedings it re-iterated its belief that FAR's claims are without merit.

RBC Capital Markets analyst Ben Wilson said the battle between the lawyers in Paris could be the first real test of whether FAR's pre-emptive right over the transaction in still live and exercisable.

The ICC was the same organisation that heard the 2014/2015 case over pre-emptive rights over a PRL-15 deal in Papua New Guinea, when Oil Search attempted to assert its rights to stop a farm-out by InterOil to Total.

The ICC ruled in favour of Total's farm-in to the Elk-Antelope fields.

FAR has not provided a timeline for an outcome of the arbitration however if the Oil Search/Interoil process is anything to go by it will not be a short process, Wilson said.

"Oil Search commenced the arbitration process around April/May 2014, the hearing eventually began in November 2014, was concluded in December 2014 with a decision handed down in February 2015.

"All up this process took 9-10 months."

While Wilson admitted he could not see any precedent from the PNG case, he is convinced that FAR's unyielding stance on protecting its rights suggests it may have line of sight to a funding solution or partner should it be successful in pre-empting, potentially CNOOC.

"One potential outcome for FAR if it is successful in having its pre-emptive right upheld is to exercise the right and then on-sell the 35% stake in the RSSD JV (including the SNE and FAN fields) to another party for a higher price," he said.

But he said that was good in theory and difficult in practice.

"We see the risk to FAR from a negative arbitration decision as being constrained to potential lingering bad blood within the JV the practical implications perhaps negligible," Wilson said.

Wilson said the loss of Senegal could potentially wipe $2 off Woodside's share price, and the company may also suffer a "qualitative blow to its deal execution credentials" in the event FAR was successful.

While operator Cairn Energy (40%) remains outside the arbitration process, there remains a risk to the development timeframe, he said.

He suggested the Senegal government may defer its position to an independent body with expertise, particularly if FAR can demonstrate it has a credible operating party waiting in the wings.

The state oiler Petrosen has a 10% interest in the project.

Woodside shares were $29.92 and FAR was trading at 7.6c this morning as oil fall to its lowest level in seven months.

Cheers BF

Expand

We can live with bad blood in the JV as it looks like we have been living that way for over 12 months.
I doubt there is much love lost between any of the partners.
That's just business.

In saying that I believe WPL would be mad to let this linger on for any period of time.
This is a steal.
As I said in a previous post, these people deal in telephone numbers.
This is as cheap as chips.

I really don't know what they are waiting for.

FAR even had the decency to fire the starting gun yesterday signalling its game on!!

No.	Vol.	Price($)
1	89158	49.5¢

No.

Vol.

Price($)

89158

49.5¢

Price($)	Vol.	No.
50.5¢	97696	2

Price($)

Vol.

No.

50.5¢

97696

No.	Vol.	Price($)
1	89158	0.495
1	99999	0.490
2	104597	0.485
4	260000	0.480
1	100000	0.475

No.

Vol.

Price($)

89158

0.495

99999

0.490

104597

0.485

260000

0.480

100000

0.475

Price($)	Vol.	No.
0.505	88712	1
0.510	100000	1
0.515	120000	2
0.520	149917	3
0.525	118000	2

Price($)

Vol.

No.

0.505

88712

0.510

100000

0.515

120000

0.520

149917

0.525

118000

(20min delay)
Last 49.5¢		Change -0.005(1.00%)		Mkt cap ! $45.74M

Open	High	Low	Value	Volume
50.0¢	50.0¢	49.5¢	$8.846K	17.69K

We can live with bad blood in the JV as it looks like we have...

Good habits matters when it comes to finances

Fourfold skarn increase points the way to viable garnet project, says Pure

Earnings wrap Monday Week 34: A2 Milk, Bluescope, Suncorp's climate woes & more

Noxopharm aims for autoimmune market with first human trial of SOF-SKN

Gold intercept of 8.6 g/t continues the positive storyline for Santana at NZ's RAS deposit

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

We can live with bad blood in the JV as it looks like we have...

Top Stories

Good habits matters when it comes to finances

Fourfold skarn increase points the way to viable garnet project, says Pure

Earnings wrap Monday Week 34: A2 Milk, Bluescope, Suncorp's climate woes & more

Noxopharm aims for autoimmune market with first human trial of SOF-SKN

Gold intercept of 8.6 g/t continues the positive storyline for Santana at NZ's RAS deposit

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News