December 17, 2018 / 10:58 AM / 3 months ago

Cairn, Woodside award first contracts for Senegal oil project

LONDON, Dec 17 (Reuters) -

* Woodside and Cairn Energy awarded front-end engineering contracts for Senegal’s first oil project, a key step before a final investment decision expected in mid-2019, Woodside said on Monday.

* The project’s first phase targets the unlocking of an estimated 230 million barrels of oil via a floating production storage and offloading vessel (FPSO) with a capacity of around 100,000 barrels a day.

* First oil production is expected in 2022.

* Woodside operates the project with a stake of 35 percent, with Cairn holding 40 percent and Far Ltd and the Senegal National Oil Company the rest.

* RBC said in a note on Cairn: “We believe, over the next 9-12 months, there is the potential to realise value from the ... development offshore Senegal.”

* Banking sources and a Senegal oil ministry source told Reuters last year that BP, which has other projects in the same waters, was in talks with Cairn to buy a 30-percent stake in the project which could be valued at around $600 million. (Reporting By Shadia Nasralla; Editing by Kirsten Donovan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below