The new deal, via ‘pre-emption’, replaces a US$400mln transaction agreed with LUKOIL back in July.
() has now entered into a new deal with existing partner Woodside Petroleum for the sale of its stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) assets offshore Senegal.
A different deal was previously struck with LUKOIL back in July, but, Woodside has decided to exercise its ‘pre-emption’ rights, which give it the right to preferentially purchase the assets instead of LUKOIL.
The new deal is on the same terms as agreed with LUKOIL.
The deal sees Cairn exit its 40% stake in RSSD for up to US$400mln in cash, with US$300 due on completion and a US$100mln contingent payment tied to first oil production being achieved at the Sangomar field.
Previously, in July, Cairn said it planned to immediately return US$250mln of the sale proceeds to shareholders via a special dividend.
It also noted, at that time, that the divestment also removes exposure to significant field development spending over the next four years.
With a strong balance sheet, low breakeven price production and limited capital commitments the company expects to be in a flexible position to invest and grow its business.
Cairn noted that as the proposed sale constitutes a ‘class 1’ transaction under UK listing rules it will need to be approved by shareholders, and is also subject to approval by the Government of Sénégal.
A general meeting is therefore now scheduled for September 23.