"Good Level of Interest" in Far's Sangomar Field Stake

sangomar-render-image-credit-woodside-114049.jpg

Australia's FAR Ltd said on Thursday it has received a "good level of interest" in the sale of its 15% stake in the $4.2 billion Sangomar oil and gas project being developed off Senegal.

FAR said in March it had failed to secure debt to fund the more than $300 million it needs for its share of the project after global oil prices collapsed amid the coronavirus pandemic.

The company defaulted on its project contributions in June and noted it would forfeit its interest without compensation if obligations were not fulfilled within six months.

FAR said on Thursday it would continue to cease making payments to conserve cash.

"As time progresses and global markets continue to be stressed, there remains uncertainty around FAR's ability to conclude a financing option," Managing Director Cath Norman said.

"At this point in time, a sale or partial sale is a more likely outcome. FAR has run data rooms for this purpose and has had good level of interest."

Cairn Energy holds 40% of Sangomar, operator Australia's Woodside 35%, and Senegal's national oil company Petrosen 10%, which it has the right to increase to 18%.

In a further effort to save cash, FAR said is looking to bring in a partner for its Gambian assets before proceeding with drilling at the project in 2021.

(Reporting by Anushka Trivedi in Bengaluru; editing by Richard Pullin)


Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Liquefaction and Regasification Report And Online Database

  • Annual reports -- Our new 150-page report is the first professional effort to systematically look at the universe of FLNG and FSRU projects in the planning stage – and categorize the likelihood of each making the development investment hurdle.
  • Online database -- The online database is updated every day – with information direct from primary sources. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database.
  • Customer support -- We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request Free Trial