ONGC rose 1.27% to Rs 71.60 after the company said ONGC Videsh will acquire 13.6667% participating interest in exploitation area and 15% participating interest in exploration area under RSSD production sharing contract, offshore Senegal.
ONGC Videsh through its wholly owned subsidiary has signed definitive binding agreements with FAR Senegal RSSD SA (Seller), a wholly owned subsidiary of FAR, on 10 November 2020 for acquiring 13.6667% participating interest in exploitation area (Sangomar Field) and 15% participating interest in remaining contract area (exploration area) of Rufisque, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Block, Offshore Senegal.The acquisition involves an upfront consideration of $45 million with customary adjustments including the opening working capital as of 1 January 2020 and the cash calls paid or to be paid from January 2020 onwards until completion (excluding any default interest paid/payable by FAR for any delay in cash call payments). This shall be payable upon completion. The acquisition also involves contingent payments payable annually (capped at $55 million) depending upon the brent oil price from First Oil until the earlier of 3 years from First Oil or 31 December 2027. Total investment involved including the development cost until the first oil is expected to be around $600 million.
Woodside Energy (Senegal) BV (Woodside), Capricorn Senegal (Cairns) and Le Socides Proles du Sal (Petrosen-the national oil company of Senegal) are other partners in the RSSD block. Post completion of acquisition of Cairns stake by Woodside, Woodside shall hold 68.3333% participating interest in Sangomar Field and 75% participating interest in Exploration Area while Petrosen shall hold 18% participating interest in Sangomar Field and 10% participating Interest in Exploration Area of the RSSD Block.
Senegal, officially the Republic of Senegal, is a country in West Africa. The Sangomar Field, currently under development, is located in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-ConakryBasin (MSGBC Basin), Offshore Senegal, covering an area of 772 sq. kms. and is planned to go on production in 2023 underPhase-1 development.
"The completion of the present transaction would mark ONGC Videsh entry in Senegalese offshore in a significant project under development and is consistent with its strategic objective of adding high impact exploration and near-term production assets to its existing E&P portfolio," ONGC said in a statement.
ONGC Videsh is a wholly owned subsidiary of ONGC. At present, ONGC Videsh has participation in 37 projects in 17 countries across the globe. ONGC is 60.41% owned by the Government of India (as on 30 September 2020).
ONGC's consolidated net profit slumped 84.7% to Rs 1,090.03 crore on 42.9% drop in net sales to Rs 62,496.06 crore in Q1 June 2020 over Q1 June 2019. The company will announce its Q2 September 2020 result on 13 November 2020.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU