FAR raising funds for Sangomar project off Senegal

Australia’s FAR Limited is raising funds for its share of the development capex for the Woodside-operated Sangomar oil field development located offshore Senegal.

Sangomar field development concept; Image courtesy of Woodside

FAR said on Thursday it had completed an A$146 million conditional placement to institutional and sophisticated investors at A$0.0425 per share.

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.

The proceeds from the placement form part of the planned financing package to fund FAR’s capex to first oil for the Sangomar development, working capital, and transaction costs.

The shares issued under the placement are conditional upon gaining shareholder approval at a general meeting to be held on or around January 16, 2020, and on the receipt of credit approved term sheet for an underwritten $350 million senior debt facility by December 31, 2019.

New shares issued under the placement will represent approximately 35.4% of the enlarged share capital of FAR, which will have 9,715,681,158 ordinary shares on issue.

FAR intends to use proceeds from the placement and share purchase plan to fund development capex to first oil. Along with FAR’s existing cash reserves, a $350 million senior debt facility, and a junior debt facility of up to $150 million, proceeds from the placement will be used to fund FAR’s share of capex to first oil of $492 million (which includes a 10% contingency).

The proceeds will also be used to strengthen the balance sheet and support associated working capital, including capex post first oil.

When it comes to the project, Woodside, as the operator, submitted its development and exploitation plan for the Sangomar field  to the government of Senegal in early December. The submission was done ahead of the Final Investment Decision for the project scheduled to occur later this month.

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.

The FPSO will be designed to allow for the integration of subsequent Sangomar development phases, including gas export to shore and future subsea tie-backs from other reservoirs and fields. Phase 1 of the development will target an estimated 230 MMbbl of oil.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply