Lukoil acquires an oil and gas project in Senegal for $ 300 million 

PJSC LUKOIL entered into an agreement with Cairn Energy PLC to acquire a 40% stake in the RSSD project (Rufisque, Sangomar and Sangomar Deep) in the Republic of Senegal worth US $ 300 million.

The agreement also provides for the potential payment of bonuses to Cairn Energy PLC up to US $ 100 million after the start of production. The transaction is subject to customary terms, including approval by the Government of the Republic of Senegal.

Project blocks covering 2,212 sq. M. km, located on the deep-water shelf of the Republic of Senegal, 80 km from the coast with a sea depth of 800-2175 meters. The blocks include two discovered deposits: Sangomar and FAN

The Sangomar Final Investment Decision (FID) was made in early 2020 and development of the deposit began. The company estimates that the recoverable hydrocarbon reserves at the Sangomar field are about 500 million barrels per year. The field is slated to be commissioned in 2023 with a design production of 5 million tonnes of crude oil per year

The RSSD project is being implemented under a production sharing agreement. Woodside is the operator of the project with a 35% stake. Other participants are FAR (15%) and the state-owned Petrosen (10%).

“Entering a project with already proven reserves at an early stage of development is fully consistent with our strategy and allows us to strengthen our presence in West Africa. Joining the project with qualified international partners will allow us to gain additional experience in the development of offshore fields in the region, “said Vagit Alekperov, President of PJSC LUKOIL.: ///

Record Lukoil acquires an oil and gas project in Senegal for 300 million dollars first appeared TEKNOBLOG .