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(Alliance News) - Capricorn Energy PLC on Wednesday noted Woodside Energy Group Ltd's announcement of "another significant step forward" for its Sangomar project.
Shares in Capricorn Energy were up 5.1% at 169.40 pence in London on Wednesday morning. Woodside shares were up 1.4% at 1,670.00p each.
Woodside, a Perth, Australia-based oil and gas producer, said the Leopold Sedar Senghor Floating Production Storage & Offloading facility departed from Singapore. Its final destination is approximately 100 kilometres offshore Dakar, Senegal.
Field Development Phase 1 of the Sangomar project includes a standalone FPSO with subsea infrastructure. Woodside expects production capacity of around 100,000 barrels per day.
"We are targeting first oil from Sangomar in mid-2024," said Chief Executive Officer Meg O'Neill. "The FPSO sail away reaffirms Woodside's commitment to Senegal and its future development and prosperity."
Capricorn, an Egypt-focused upstream energy company, said that under the sale and purchase agreement it may become entitled to a contingent payment of either USD25 million or USD50 million.
However, this would only take effect if the average price of Brent oil exceeds either USD55 or USD60 per barrel within the first six months of production. Additionally, Sangomar must achieve first oil within the first half of 2024.
Capricorn said that if first oil is achieved by June 30, it expects to receive the contingent payment in early 2025, following 30 days of continuous production and once the average oil price has been determined.
First oil, Capricorn explained, is defined as the first continuous 72-hour period of production from Sangomar during which at least 30,000 barrels are produced for sale.
If the conditions are met for Capricorn to receive the payment, the company "remains committed" to redistributing proceeds among its shareholders.
By Emma Curzon, Alliance News reporter
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