FAR in talks for $300 million credit for Sangomar

Australia’s FAR Limited has made progress in securing funds for its share of the Sangomar field development located offshore Senegal. 

Sangomar concept; Image courtesy of Woodside

FAR said on Wednesday that, to date, it had received credit approved terms for $200 million. The company is in talks to increase this sum to $300 million.

The company added that further updates on the matter were expected next week.

It is worth reminding that FAR completed an A$146 million conditional placement to institutional and sophisticated investors at A$0.0425 per share in mid-December.

In addition, FAR said it would conduct a share purchase plan to existing eligible shareholders to raise up to a further A$30 million at the same price as the placement.

Proceeds from the placement and share purchase plan, along with FAR’s existing cash reserves, a $350 million senior debt facility, and a junior debt facility of up to $150 million will be used to fund FAR’s share of capex to first oil of $492 million, which includes a 10 percent contingency.

As for the project, Woodside’s development and exploitation plan for the Sangomar field was approved on January 9 by the government of Senegal.

Woodside sanctioned the project the following day and awarded a contract for the supply of a floating production storage and offloading (FPSO) vessel to Japan’s MODEC. The operator also awarded a contract to Subsea Integration Alliance, a partnership between Subsea 7 and Schlumberger’s OneSubsea.

The Sangomar Field Development Phase 1 concept is a stand-alone floating production storage and offloading (FPSO) facility with 23 subsea wells and supporting subsea infrastructure. The FPSO is expected to have a capacity of around 100,000 bbl/day, with first oil targeted in early 2023.

Offshore Energy Today Staff


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