Lukoil to Buy 40% Interest in Senegal Project from Cairn Energy for up to $400 Million
July 27 2020 - 3:14AM
Dow Jones News
By Ian Walker
Lukoil PJSC said Monday that it is buying a 40% interest in the
Rufisque, Sangomar and Sangomar Deep project in the Republic of
Senegal for up to $400 million in cash from Cairn Energy PLC.
The Russian energy company said it will pay an initial sum of
$300 million to Cairn with a potential bonus payment of $100
million once production starts.
The recoverable hydrocarbon reserves of the Sangomar field are
estimated at 500 million barrels of oil equivalent. The field is
planned to be launched in 2023, with designed production level of 5
million tons of crude oil a year, Lukoil said.
Separately, Cairn Energy said it will return $250 million of the
funds from the sale to shareholders via a special dividend.
The deal is subject to the approval of the other partners in the
project as well as the Government of Senegal and Cairn's
shareholders. If approved, completion is expected in the fourth
quarter of this year.
Woodside Petroleum is the project's operator with a 35% stake.
Other participants are FAR (Senegal) with 15% and state-owned
company Petrosen with 10%.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
July 27, 2020 02:59 ET (06:59 GMT)
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