(Alliance News) - Woodside Energy Group Ltd on Tuesday confirmed that the Leopold Sedar Senghor Floating Production Storage and Offloading facility has safely arrived offshore Senegal.
The Perth, Australia-based oil and gas producer said it was a significant step toward achieving first production from the Sangomar field, which is targeted for mid-2024.
Woodside said it signalled the start of the next phase of the project: commissioning the FPSO and hooking up the 23 production, gas and water injection wells that make up the Sangomar Field Development Phase 1.
Earlier, Capricorn Energy PLC, an Egypt-focused upstream energy company, confirmed the arrival of the FPSO facility.
In 2020, Capricorn sold its stake in the Sangomar project to Woodside for USD525 million.
Under the terms of the deal, Capricorn may become entitled to a contingent payment of either USD25 million or USD50 million.
But only if the average Brent oil price during the first six months of production exceeds the USD55 per barrel or USD60 per barrel thresholds and first oil is achieved in the first half of 2024.
If first oil is achieved prior to the end of June, Capricorn said the contingent payment is anticipated in early 2025, once the average oil price has been determined and there has been 30 days of continuous production.
In either case, Capricorn said no additional payment will be due from Woodside if the average Brent price is less than or equal to USD55 per barrel or if first oil is achieved later than the first half of 2024.
Shares in Woodside Energy fell 0.1% to AUD31.13 in Sydney on Tuesday.
Shares in Capricorn Energy rose 1.2% to 121.80 pence in London.
By Jeremy Cutler, Alliance News reporter
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Woodside Energy (WDS)
Capricorn Energy PLC (CNE)