(Alliance News) - Oil and gas exploration company Cairn Energy PLC on Monday said it has agreed to sell its stake in the RSSD production sharing contract in Senegal to Australia's Woodside Petroleum Ltd, after Woodside exercised its right to pre-empt a proposed sale to Russia's NK Lukoil PAO.
Cairn Energy shares were up 1.4% at 141.10 pence each on Monday morning in London. Woodside closed down 0.5% at AUD18.87 in Sydney.
Lukoil had struck an agreement to buy Cairn's 40% stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore PSC back in July. Lukoil was to pay USD300 million for the stake with further contingent consideration of up to USD100 million once production starts.
Cairn Energy, which is focused on North West Europe, the Atlantic Margin and the Mediterranean, then said last month that Woodside had decided to pre-empt the deal on the same terms and conditions as the agreement with Lukoil.
The transaction is conditional on the approval of Cairn's shareholders during a general meeting to be held on September 23. It also requires approval from the government of Senegal.
In a statement last Friday, Australian petroleum exploration and production company Woodside said it expected the acquisition to close in the fourth quarter of this year. Its holding in the RSSD area rises to 75%.
Woodside shares closed down 0.5% at AUD18.87 in Australia on Monday evening.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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