ConocoPhillips is facing a rising pressure from its Australian partner FAR to sell its 35% interest in the SNE and FAN deep water oil discoveries offshore Senegal.
In July 2016, ConocoPhillips entered into a binding Purchase and Sale Agreement (PSA) with Australian oil and gas producer Woodside, under the terms of which Woodside will acquire 100% of the shares in ConocoPhillips Senegal for up to US$430m. This includes a 35% working interest in a Production Sharing Contract (PSC) with the Government of Senegal covering three offshore exploration blocks, namely Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore. The PSC covers the SNE and FAN deep water oil discoveries.
SNE is one of the largest global deepwater oil discoveries since 2014. Its estimated reserves have recently been raised, from 560 mbl to 641 mbl, as British oil group Cairn Energy (operator, 40%) revised upwards contingent reserves of the SNE discovery in August 2016. Recoverable crude oil reserves are now estimated at 473 mbl (+23%)
FAR owns a 15% stake in the SNE field and will seek to exercise its pre-emption rights when the sale process officially starts.