Cairn has sold 30% of Its Senegal play to BP inc operatorship think Exxon the low bid., page-160

Here is my response from Angelique. Her response are in italic as it didn't copy as red. They are interesting. Thanks Angelique.

Thank you for the email. Yes it appears social media was abuzz after the suggestion was made that CNE would be selling to BP. I would not be surprised that BP want into this West African hotspot but I guess we will have to wait and see how that all plays out.


In relation to your questions, I have made some comments in red below.

Hi FAR, lots of rumours floating around regarding BP and Cairn. I'm not going to ask about rumours but clarification regarding PE rights if CNE was to sell some %.

FAR should have the right to PE. The right to pre-empt depends on the nature of the sale if you are right and Cairn is selling 30% in the project then this looks likely to be subject of the partner’s rights to pre-empt.


Would I be correct in assuming that WPL have PE rights pending a decision from the arbitrators on the COP sale. This depends on timing. At this point in time and until the arbitration findings, FAR would claim that Woodside has no right to pre-empt (however COP would have the right – whether this would be approved by the Government is another issue).

If FAR was to PE only then no issues. The general principal around offering pre-emptive rights to JV partners is to allow the partners, who have invested in and remain in the project, to buy the stake offered for sale – it’s particularly important if the sale is undertaken at a low price. Hence, if Cairn was to sell down then FAR would need to consider the price of the deal as part of the acceptance or waiving of pre-emptive rights.

If FAR and WPL PE, what happens if arbitration is in our favour? If compensation then I guess possibly a higher amount. If roll-back occurs allowing us to PE then do we have that option on the COP deal as well as CNE? As you point out, this depends on timing. I do not think that the ICC court will allow the “roll back” as you describe – remember that FAR has not elected to pre-empt the COP sale and may not even if we are given the right (we have not seen all of the terms and conditions of the sale). You pose an interesting question for the lawyers. However, please bear in mind that we have not been notified of a sale or the intention of Cairn to sell any share of their position. Cairn is also not a stressed seller and we certainly hope this means if they do sell then it will be for a healthy price.



If a roll-back occurs on the COP deal and WPL had PE'd on CNE then does that also revert back to the original purchaser from CNE? Again, this is a hypothetical question for the lawyers.

I'd appreciate if you could clarify any misconceptions around this matter as it's caused some confusion on the forums.