(Carin, 17.Aug.2020) — Cairn Energy announced that further to its announcement on 27 July 2020 of the proposed sale of Cairn’s interests in the Sangomar field offshore Senegal to Lukoil, Woodside has exercised its right to pre-empt on the same terms and conditions.
In the event that no other JV parties pre-empt prior to the deadline of 26 August then Woodside will acquire Cairn’s entire interest in the project. The transaction remains subject to government of Sénégal consent and Cairn shareholder approval.
A Class 1 circular will be issued to shareholders in due course.
Notes to Editors:
— Cairn to sell its entire interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Contract Area, including the Sangomar development to Woodside with effective date of 1 January;
— Completion expected in Q4 2020;
— Cash consideration payable on Completion of $300mn plus working capital adjustments including reimbursement of development capital expenditure incurred since 1 January (Cairn’s net capex guidance for Sangomar in 2020 is $330mn);
— Further contingent consideration of up to $100mn, dependent on the timing of first oil and the average Brent oil price during the first six months of production.