ConocoPhillips has 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.
ConocoPhillips Senegal holds 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, with estimated reserves of 560 mbl of recoverable oil.
The acquisition, worth US$430m, includes the option for Woodside to operate the future development of any resource. Completion of the PSA is subject to satisfaction of customary conditions, including Government of Senegal approval and pre-emption and is targeting close by year-end 2016.