Woodside Contingent Payment – up to US$55 million
In July 2021, FAR completed the sale of its entire interest in the Senegal RSSD Project to Woodside in a transaction approved at a general meeting of shareholders held on 28 April 2021.
FAR received US$126 million in cash from Woodside on completion of the sale on 7 July as well as rights to a contingent payment, as consideration for the sale of its interest in the RSSD Project.
The contingent payment of up to US$55 million is payable in the future based on various factors relating to the sale of oil from the RSSD Project.
The contingent payment comprises 45% of entitlement barrels (being the share of oil relating to FAR’s 13.67% RSSD Project exploitation area interest) sold over the previous calendar year multiplied by the excess (if any) of the crude oil price per barrel (capped at US$70) and US$58.
The contingent payment terminates on the earliest of 31 December 2027, 3 years from first oil being sold (excluding any periods of zero production), and a total contingent payment of US$55 million being reached.
Woodside’s holding company, Woodside Petroleum Limited, is Operator of the Sangomar oil development. Woodside announced on 11 June 2024, that the Sangomar Field Development Phase 1 had achieved first oil production.