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Lukoil Enters Hydrocarbon Production Project in Republic of Senegal

Gasoil News - Published on Tue, 28 Jul 2020

Image Source: LUKOIL Cairn Energy RSSD Senegal
PJSC LUKOIL has concluded an agreement with Cairn Energy PLC to acquire a 40% interest in Rufisque, Sangomar and Sangomar Deep project in the Republic of Senegal for USD 300 million in cash. The agreement also provides for potential bonus payment to Cairn Energy PLC of up to USD 100 million after the commencement of production. The transaction is subject to customary conditions, including the approval by the government of the Republic of Senegal. The blocks of the project covering 2,212 square kilometers are located on the deepwater shelf of the Republic of Senegal 80 km from the shore with the sea depth of 800-2,175 meters. The blocks include two discovered fields: Sangomar and FAN.

The Final Investment Decision on the Sangomar field was taken in the beginning of 2020 and the field development has begun. According to the Company's estimates, the recoverable hydrocarbon reserves of the Sangomar field total approximately 500 million boe. The field is planned to be launched in 2023 with designed production level of 5 million tons of crude oil per year.

The RSSD project is being implemented under a production sharing agreement. Woodside is the project's operator with 35% stake. Other participants are FAR 15% and state-owned company Petrosen 10%.

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Posted By : Yogender Pancholi on Tue, 28 Jul 2020
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