Australia's Woodside has agreed to buy all of ConocoPhillips’ interests in three exploration blocks offshore Senegal for US$530 million.
Under the Purchase and Sale Agreement (PSA) Woodside buys 100 per cent of the shares in ConocoPhillips Senegal which holds a 35 per cent working interest in three offshore exploration blocks, Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore. The acquisition includes the option for Woodside to operate the future development of any resource.
Woodside CEO Peter Coleman said the acquisition aligned with the company’s growth strategy by providing a significant position in an under explored and highly prospective emerging oil province. The SNE and FAN discoveries opened up the basin, and recently completed appraisal work has proven up high-quality resources.
“It builds on our agreement to acquire a 65 per cent interest in the AGC Profond exploration block located to the south in the Senegal-Guinea Bissau joint development zone and extends our regional focus in West Africa," he said.
The Production Sharing Contract includes the SNE and FAN deep water oil discoveries. SNE is one of the largest global deep water oil discoveries since 2014. Woodside estimates that the SNE discovery contains 560 MMbbl of recoverable oil (at the 2C confidence level, 100 per cent).