LUKOIL has signed an agreement to acquire 40% in the RSSD project in Senegal

27 July 2020


LUKOIL has entered into an agreement with Cairn Energy PLC to acquire a 40 per cent stake in the RSSD (Rufisque, Sangomar and Sangomar Deep) project in the Republic of Senegal, with a transaction value of $300 million payable in cash. This is stated in the message of LUKOIL.


The company noted that the agreement provided for the possible payment of a bonus to Cairn Energy PLC in the amount of up to $100 million after the start of hydrocarbon production. The transaction will be closed after fulfilling the deferred conditions, including approval by the government of the Republic of Senegal.


The total area of the blocks included in the project is 2212 square km. The blocks are located on the deep-water shelf of the Republic of Senegal, 80 km from the coast. Two fields have been discovered within the blocks: Sangomar and FAN.


A final investment decision was made for the Sangomar field in early 2020 and work has begun on its development. LUKOIL estimates that the recoverable hydrocarbon reserves of the Sangomar field amount to about 500 million barrels of oil per day. The field is planned to be launched in 2023 with a projected production level of 5 million tons of oil per year. The RSSD project is implemented under the terms of a production sharing agreement. The project operator is Woodside with a 35% stake. Other partners are FAR (15%) and state-owned Petrosen (10%).


"The acquisition of a stake in a project with a proven resource base at an early stage of development is fully consistent with our strategy and allows us to strengthen our presence in West Africa. Participation in the project with professional international partners will allow  to gain additional experience in working on offshore fields in the region, "said LUKOIL President Vagit Alekperov.

 

GSV "Russia - Islamic World"

Photo: Public Domain

Based on materials from TASS