According to reports on Tuesday, Australian independent Woodside Petroleum has said it is considering blocking Russia’s Lukoil from buying Cairn Energy’s stake in the Rufisque, Sangomar and Sangomar Deep (RSSD) license offshore Senegal.
The deal, just recently announced between Lukoil and Cairn, would see the Russian firm pay Cairn $300 million in cash for its stake, along with the potential for another $100 million after production commences.
The deal has not yet been sealed as it is subject to customary government and joint venture approvals. According to Reuters reporting, a spokesperson said the firm was considering its options.
Woodside, as operator in the $4.2 billion Sangomar oil project holds a 35% stake while Cairn Energy holds 40% and fellow Australian firm FAR Ltd holds a 15% stake. Woodside could also increase its stake by making a deal with FAR who has been unable to make cash calls and has said it is looking to sell all or part of its interests.
Source: Petroleum Africa