Australia’s FAR Limited has made progress in securing funds for its share of the Sangomar field development located offshore Senegal.
FAR said on Wednesday that, to date, it had received credit approved terms for $200 million. The company is in talks to increase this sum to $300 million.
The company added that further updates on the matter were expected next week.
It is worth reminding that FAR completed an A$146 million conditional placement to institutional and sophisticated investors at A$0.0425 per share in mid-December.
In addition, FAR said it would conduct a share purchase plan to existing eligible shareholders to raise up to a further A$30 million at the same price as the placement.
Proceeds from the placement and share purchase plan, along with FAR’s existing cash reserves, a $350 million senior debt facility, and a junior debt facility of up to $150 million will be used to fund FAR’s share of capex to first oil of $492 million, which includes a 10 percent contingency.
As for the project, Woodside’s development and exploitation plan for the Sangomar field was approved on January 9 by the government of Senegal.
Woodside sanctioned the project the following day and awarded a contract for the supply of a floating production storage and offloading (FPSO) vessel to Japan’s MODEC. The operator also awarded a contract to Subsea Integration Alliance, a partnership between Subsea 7 and Schlumberger’s OneSubsea.
The Sangomar Field Development Phase 1 concept is a stand-alone floating production storage and offloading (FPSO) facility with 23 subsea wells and supporting subsea infrastructure. The FPSO is expected to have a capacity of around 100,000 bbl/day, with first oil targeted in early 2023.
Source: Offshore Energy