Australia’s largest LNG operator Woodside said it has agreed to buy ConocoPhillips’ stake in three exploration blocks, offshore the coast of Senegal for up to $430 million.
Under the purchase and sale agreement, Woodside will acquire 100% of the shares in ConocoPhillips Senegal B.V. which holds a 35% working interest in a production sharing contract with the Government of Senegal covering three blocks, Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore.
The acquisition includes the option for Woodside to operate the future development of any resource, Australian LNG company said in its statement.
The production sharing contract includes the SNE and FAN deep water oil discoveries. SNE is one of the largest global deep water oil discoveries since 2014. Woodside estimates that the SNE discovery contains 560 MMbbl of recoverable oil.
Woodside CEO Peter Coleman said the acquisition aligned with the company’s growth strategy by providing a “significant position in an under explored and highly prospective emerging oil province”. The SNE and FAN discoveries opened up the basin, and recently completed appraisal work has proven up “high-quality resources”.
Completion of the PSA is subject to satisfaction of customary conditions, including Government of Senegal approval and pre-emption and is targeting close by year-end 2016.