Australia's Woodside Petroleum said on Monday it has exercised its right to match Russia's Lukoil's $400 million offer to buy Cairn Energy's entire stake in the Sangomar oil project in Senegal.
The acquisition takes Woodside’s interest in the Rufisque, Sangomar and Sangomar Deep offshore joint venture to about 68%, making it the largest shareholder, and is set to remain as operator of the $4.2 billion project.
Woodside will make an upfront payment of $300 million, along with contingent payments of up to $100 million, which will be funded from its current cash reserves, it said in a statement. The acquisition would remove “the potential uncertainty of U.S. sanctions applying to the Sangomar Field development,” Woodside chief executive Peter Coleman said in a statement.
Lukoil, which in July offered $400 million to buy Cairn’s stake in the project, is on a U.S. list of sanctioned Russian firms, including for transactions related to deepwater oil projects.The deal is subject to approval from the Government of Senegal, shareholders of Cairn Energy, among others, Woodside said.
Reporting by Sameer Manekar in Bengaluru, additional reporting by Vladimir Soldatkin in Moscow; Editing by Richard Pullin
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