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LUKOIL Has Signed An Agreement To Acquire 40% In The RSSD Project In Senegal

LUKOIL Has Signed An Agreement To Acquire 40% In The RSSD Project In Senegal

LUKOIL has entered into an agreement with Cairn Energy PLC to acquire a 40 percent stake in the RSSD (Rufisque, Sangomar and Sangomar Deep) project in the Republic of Senegal, with a transaction value of $300 million payable in cash, according to the official message of LUKOIL.

The company noted that the agreement provides for the possible payment of a bonus to Cairn Energy PLC in the amount of up to $100 million after the start of hydrocarbon production. The transaction will be closed after fulfilling the deferred conditions, including approval by the government of the Republic of Senegal.

The total area of the blocks included in the project is 2212 square km. The Blocks are located on the deep-water shelf of the Republic of Senegal, 80 km from the coast. Two deposits have been discovered within the blocks: Sangomar and FAN.

A final investment decision was made for the Sangomar field in early 2020, and work has begun on its development. According to LUKOIL estimates, the recoverable reserves of the Sangomar field are about 500 million barrels of oil per year. The field is to be Launched in 2023, with a projected production level of 5 million tons of oil per year. The RSSD project is implemented under the terms of a production sharing agreement. The project operator is Woodside, with a 35% stake. Other partners are FAR (15%) and state-owned Petrosen (10%).

"The acquisition of a stake in a project with a proven resource base at an early stage of development is fully consistent with our strategy and allows us to strengthen our presence in West Africa. Participation in the project with professional international partners will allow you to gain additional experience in working on offshore fields in the region, "said LUKOIL President Vagit Alekperov, quoted in the message.

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