December 2, 2019 / 11:28 PM / 8 months ago

Australia's FAR submits final development plan for Senegal oil project

Dec 3 (Reuters) - Australian oil and gas explorer FAR Ltd on Tuesday said it has submitted the final field development plan for the Sangomar oil field to Senegal government.

The plan was submitted on Monday and outlines the full multi-phase development of oil and gas at the field, previously known as SNE, with plans for 645 million barrels of oil equivalent (mmboe) to be developed.

Sangomar is expected “to result in considerable cash generated for FAR and its shareholders from first oil in 2023, a time when FAR would also be one of the largest oil producers listed on the ASX,” Managing Director Cath Norman said.

Far shares rose as much as 2.2% in early trade, while the broader market declined more than 1%.

The oil field, which is 15% owned by FAR and operated by Australia’s Woodside Petroleum, is positioned to be Senegal’s first offshore oil development field.

However, financing for the project has stalled amid an arbitration in which FAR has challenged Woodside’s acquisition of a 35% interest in the project in 2016. The arbitration is due to be resolved by the end of this year.

In November, FAR appointed Macquarie Bank as the arranger for a $350 million debt facility to develop the oil field. (Reporting by Shruti Sonal in Bengaluru; Editing by Sam Holmes)

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