Trouble for Woodside as Lukoil bids for FARAngela...

Trouble for Woodside as Lukoil bids for FARAngela Macdonald-SmithSenior resources writerFeb 17, 2021 – 4.24pmSaveShareRussian oil giant Lukoil has lobbed a non-binding takeover bid for junior oil explorer FAR, emerging once again as a potentially troublesome partner for Woodside Petroleum in its $5.5 billon oil project in Senegal.Lukoil, which Woodside has already once pre-empted from buying into the Sangomar project, made a conditional 2.2¢ per share cash offer for FAR just a day before shareholders of the explorer were due to vote on the proposed sale of FAR’s interest in Sangomar to Woodside. The offer values FAR at $220 million.FAR, which hired Baker McKenzie to advise on the Lukoil offer, has now postponed the shareholder vote. It is already in default on cash payments due to cover its share of Sangomar construction costs, but it said Lukoil is open to providing “reasonable financing support” to clear its debts.Russian oil giant Lukoil is trying a second way of elbowing into Woodside’s oil project in Senegal. The latest development adds a further twist in the drawn-out saga over ownership of the Sangomar project, which Woodside is the operator of and which is still in the early stages of construction. Woodside already made clear it does not regard Lukoil as a suitable partner in Sangomar because of the uncertainty of US sanctions applying to the venture if the Russian firm was involved.The proposed offer is worth more for FAR shareholders than either the proposed sale of FAR’s Sangomar stake to Woodside, or an earlier incomplete takeover proposal from mystery bidder Remus Horizons, Lukoil advised its Australian target. The proposal from Remus has already caused the FAR shareholder vote to be twice postponed but has not been firmed up.RELATED QUOTESWPLWoodside Petroleum$25.960 0.50%1 year1 dayFeb 20Aug 20Feb 2115.00025.00035.000Updated: Feb 17, 2021 – 9.06pm. Data is 20 mins delayed.View WPL related articles FARFAR Limited$0.0110.00Feb 20May 20Sep 200.0070.0210.035AdvertisementLukoil’s offer is conditional on the shareholder vote being rescheduled, backing from the FAR board and minimum acceptances of 50.1 per cent.FAR said that Lukoil stated it does not believe it requires Foreign Investment Review Board approval for the deal. It said Lukoil stated it already has a deep understanding of the Sangomar project as it previously completed due diligence on it as part of its deal to buy Cairn Energy’s 40 per cent stake, the transaction that was derailed by Woodside.Shares in FAR last traded in September at 1.1¢ before being suspended amid queries over its financial accounts.