ConocoPhillips Confirms FAR Holds Pre-Emption Right for Senegal Project
Africa-focused FAR Ltd. reported Tuesday that ConocoPhillips Co. has confirmed that the company has a right of pre-emption over the proposed sale of ConocoPhillips interests in Senegal to Woodside Petroleum Limited for up to $430 million.
FAR pointed out that in its opinion, as supported by legal advice, ConocoPhillips has failed to comply with the terms of the Joint Operating Agreement in relation to the proposed sale of its interests in the Senegal project to Woodside.
"As a consequence FAR believes that the pre-emption period has not yet commenced," the firm said in the press release.
FAR, an Australia-listed company, has informed ConocoPhillips of its position on the transaction. Both parties have been urged by the Senegal government to reach an amicable solution on the matter, a move which FAR has agreed to.
ConocoPhillips holds 35 percent interest in the Senegal Production Sharing Contract, with operator Cairn Energy holding a 40 percent stake. FAR has a 15 percent interest and Senegal's national oil company Petrosen holds the remaining 10 percent.
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