Cairn, FAR Are Said to Be in Talks to Sell Senegal Field Stake...

Cairn, FAR Are Said to Be in Talks to Sell Senegal Field Stake By Dinesh Nair and Kelly

companies seeking to divest 35% of SNE field to India’s ONGCSNE may cost $3 billion to develop, pump 100,000 barrels a day(Bloomberg) --Cairn Energy Plc and FAR Ltd. are in talks to sell part of their stakes in a large deepwater oil discovery off Senegal to India’s Oil & Natural Gas Corp., according to people with knowledge of the discussions.The companies, which own 55% of Senegal’s SNE field, plan to divest about 35%, the people said, asking not to be identified because the talks are private. A sale would reduce the financial burden on Cairn and FAR as they develop the project, which could require $3 billion in capital investment, one person said.No deal has been signed and negotiations could still fail, the people said. The stake may also draw interest from other bidders, according to the people.Cairn declined to comment. Melbourne-based FAR couldn’t be reached outside normal business hours. A spokeswoman for ONGC Videsh, the overseas investment unit of ONGC, couldn’t immediately comment.Senegal has become a hot destination for oil and gas companies on the hunt for new resources. Cairn drilled the first deepwater wells off the West African nation in 2014, making one of the largest oil finds globally that year at the SNE prospect, according to its website. Dallas-based Kosmos Energy Ltd. then made a series of major offshore gas discoveries starting in 2016, and is developing the Tortue gas-export facility with BP Plc.Cairn and its partners submitted their SNE development plan to Senegal’s government last year. The plan showed that the field will be developed in phases, with production starting in 2022 and ultimately reaching about 100,000 barrels of oil a day. Cairn also said last year thatWoodside Petroleum Ltd., with a 35% stake in SNE, would exercise its option to become operator.Cairn holds a 40% stake, FAR has 15% and Senegal’s national oil company Petrosen owns the remaining share. It’s not clear what stakes Cairn and FAR would be left with if they sell the 35% stake to ONGC.