Woodside want quick resolution to Senegal

Woodside chief executive Peter Coleman has called on oil-and-gas explorer FAR to make its intentions known over a disputed Senegal oilfields deal.

Melbourne-based FAR has questioned the expiry of pre-emption rights over partner ConocoPhillips’ $US430 million ($563 million) deal to sell Woodside its 35 per cent stake in the venture.

Mr Coleman yesterday said while Woodside believed a pre-emption right should not exist, ConocoPhillips was correct in arguing the 30-day period was over. Fifteen per cent stakeholder FAR claims its has not begun.

“FAR really need to come out and tell everybody what their intention is,” Mr Coleman said. “It’s creating a bit of uncertainty for everybody.”

He said FAR’s notice this week was surprising to Woodside.

“We don’t believe pre-emption is applicable in this instance because we’re purchasing a company ... not an asset.

“Conoco chose a different path. It’s in their hands now to go and deliver the asset to us.”

Mr Coleman said even though Senegalese law was untested in this area, he was confident ConocoPhillips would prevail.

If the deal fell over, “we’ll just pick ourselves up and look for something else”.

FAR said it was following the mediation process under the terms of its operating agreement with ConocoPhillips.

FAR has declined to say if it wanted to pre-empt the sale.

The West Australian