WPL's Actions Today

I have been thinking about what circumstances may have lead to today's announcement and my thoughts are below. Hopefully others can expand on this but it looks as though WPL may be attempting to force the Senegalese govt's hand, whether by releasing an approval or the govt putting pressure on FAR.

1. Early May WPL releases an investor presentation stating that they are working with CNE on the transfer of operatorship.
2. FAR has either been waiting for such a declaration or on finding out about WPL & CNE's intention has advised the JV that under the JOA they object to CNE handing over operatorship of SNE.
3. WPL & CNE get their lawyers to look at the JOA and to their dismay find that FAR has the right to veto the transfer.
4. WPL under continuous disclosure obligations releases today's announcement but not before carefully considering their options.

I believe that WPL's objective with the announcement was to have the local Senegalese news sites pick up the announcement and republish it. The part where the transfer will result in delayed startup to production would gain traction with the public even if untrue as FAR states. WPL has the propaganda machine working overtime. The objective is to put pressure on the Senegalese government via the public, the opposition parties and their own government ministers who are up for re-election in July.

The sitting members would be worried that they may not get re-elected because of this article.
The opposition party would be proclaiming that they would have never let this get to this point and it is a visible failure by the current government and only they can fix it. A political nightmare for Macky Sall in the weeks leading up to the election.


What happens next is anyone's guess but WPL is far from beaten if this was their plan. After the election they may be in the dog house with Macky Sall but I assume they would care little anticipating a change of govt in the years ahead and a chance to forge better relationships.