PJSC LukOil LUKOIL Enters Hydrocarbon Project in Senegal (1380U)
July 27 2020 - 2:24AM
UK Regulatory
TIDMLKOD
RNS Number : 1380U
PJSC LukOil
27 July 2020
LUKOIL ENTERS HYDROCARBON PRODUCTION PROJECT IN THE REPUBLIC OF
SENEGAL
PJSC LUKOIL (hereinafter - the Company) concludes an agreement
with Cairn Energy PLC to acquire a 40% interest in RSSD (Rufisque,
Sangomar and Sangomar Deep) project in the Republic of Senegal for
$300 mln in cash. The agreement also provides for potential bonus
payment to Cairn Energy PLC of up to $100 mln 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 sq. km 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 (FID) 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%).
"Entering the project with already explored reserves at early
stage of their development is fully in line with our strategy and
allows us reinforcing our presence in West Africa. Joining the
project with qualified international partners will allow us to gain
additional experience in development of offshore fields in the
region", said Vagit Alekperov, President of PJSC LUKOIL.
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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