Good bye Woodside..., page-55

It's become a bit confusing when both parties seem to have a different view of the JOA & PSC (which are in French & can b translated into English by language experts). The story so far, post 13th July 2016 (US time) after Conoco announced the Senegal asset sale,  

1) Conoco in their recent Qtrly updates have recorded a gain from the sale of this asset (refer their SEC filings).

2) FAR's slide#16 from its 21st July 2016 Noosa Conference states, 'FAR has been notified about its right to Pre-empt & is reviewing the proposal to fully understand the potential transaction'.

3) Woodside in their ASX updates illustrate spending USD452mil (plus 4mil) on the acquisition & apprx USD80mil on appraisal activity.


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In my view, this confusion has most likely got to do with Article 14 (ie: PE & transfer of rights) from the JOA, article 4 is about the Operator's responsibilities. These state that other parties in the JV have PE right & 30 days to respond after duly notified by the transferring party.

Sub-article 14.2 is about the right to transfer or assign all or part of Percentage of Participation in a company affiliate.


Article 29 from the PSC is about notification & 60 day approval timeframe from the Minister.

So using 14th July as the Sale date, apply 30 + 60 days criteria one gets 14th Oct 2016 as the completion date.
  
Now here's the interesting part which no one has bothered discussing all morning.


Page-31 (section E 9, bullet points 9 & 10 and the different symbology) from WPL's report this morning is about their various Senegal subsidiaries.

It shows that Woodside Energy (Senegal) BV is incorporated in the Netherlands.

The subsidiary was acquired on 28th Oct 2016 (as per WPL's 31st Oct 2016 ASX release). It changed its name from ConocoPhillips Senegal BV to Woodside Energy (Senegal) BV on 26th Jan 2017.

There's mention of 2 other subsidiaries related to Senegal (most likely 'KORA' Block) listed below,

- Woodside Energy (Senegal) Pty Ltd incorporated on 27Jan 2016 and

- Woodside Energy Holdings (Senegal) Limited incorporated in UK on 22 June 2016.


For those still struggling to find the publicly available JOA & PSC from SHOC days, u haven't looked hard enough, so please start with itie.sn for starters.

In Nov 2014 KOS released their Senegal PSC Form 10-Q as part of their SEC filing (in English) on their website. So use this as a guide (only changes r the Equity % & profit share term based on BOPD)

In Sept 2016 the Senegalese govt released an update on keeping its Petroleum contract award process transparent & as part of that initiative it released these doc's. So figure it out folks, can't b an impossible task for shareholders.

Fiscal terms are extremely 'Lucrative' for someone like Woodside (75% cost Recovery, 25% tax, 75:25 profit share on 100k-150k bopd flow, petrosen free carried to 18% for a field in 500+ metre water depth etc etc) compared to what they got in Mauritania (Chinguetti, i.e).

Hope this helps in understanding the current stand-off.