(Alliance News) - Cairn Energy PLC and its partners in Senegal has approved the development of the Sangomar field, Cairn confirmed on Wednesday.
Edinburgh-based Cairn operates the project alongside Australia's Woodside Petroleum Ltd and FAR Ltd, another Australian energy company. Woodside reported approval of the first phase of the project last week.
Cairn said the decision follows approval from the government of Senegal. Phase one will target estimated oil reserves of 231 million barrels gross.
Operator Woodside has completed a purchase contract for a floating production, storage & offloading vessel for the project, as well as contracts for drilling, subsea construction and installation.
Cairn Chief Executive Simon Thomson said: "Cairn's discoveries offshore Senegal from the country's first deepwater wells opened up a new basin on the Atlantic Margin.
"Cairn has operated three drilling programmes and successfully laid the foundation for Senegal's first multi-phase oil and gas development. Senegal is now an attractive oil and gas province, drawing the attention of the global industry."
Alongside Senegal, Cairn has assets across the world, including the UK, the Americas, other parts of Africa, Israel, and Norway.
Shares were flat in early trade in London on Wednesday at 195.40 pence each.
Shares in Woodside closed 0.4% higher on Wednesday in Sydney at a price of AUD35.80.
By George Collard; georgecollard@alliancenews.com
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Capricorn Energy PLC (CNE)