google adsense check
Home STOCKS UPDATE 2-Australia's Woodside matches Russia's Lukoil offer for Senegal oil undertaking By...

UPDATE 2-Australia’s Woodside matches Russia’s Lukoil offer for Senegal oil undertaking By Reuters

© Reuters.

(Adds Woodside CEO, analyst comments)
By Sonali Paul and Sameer Manekar
MELBOURNE/BENGALURU, Aug 17 (Reuters) – Australia’s Woodside Petroleum has exercised its ideal to match a $400 million offer by Russia’s Lukoil to buy Cairn Electrical power ‘s total stake in the Sangomar oil task in Senegal, it said on Monday.
The acquisition normally takes Woodside’s interest in the Rufisque, Sangomar and Sangomar Deep offshore joint venture to about 68%, making it the major shareholder. It will keep on being as operator of the $4.2 billion task.
Woodside will make an upfront payment of $300 million, alongside with contingent payments of up to $100 million, funded from its current cash reserves, it reported in a statement.
The acquisition would get rid of “the prospective uncertainty of U.S. sanctions implementing to the Sangomar Field progress,” Woodside Main Government Peter Coleman said in a assertion.
Lukoil, which in July presented $400 million for Cairn’s stake, is on a U.S. list of sanctioned Russian companies, like for transactions related to deepwater oil tasks. declined to remark on Woodside’s go.
Woodside explained it would consider advertising down its stake in Sangomar in excess of the future 12 months.
“We look forward to finishing the transaction with Cairn and doing work with all stakeholders, which includes probable new joint venture partners, to successfully produce Senegal’s 1st oil project,” Coleman mentioned.
Woodside will now have to foot a even bigger share of the $4.2 billion advancement charge for the job.
“It could stretch the balance sheet,” analyst Saul Kavonic reported, unless of course oil price ranges recuperate to far more than $50 a barrel or Woodside revises designs for its Scarborough fuel project in Australia.
New companions could enter the project either with Woodside’s provide-down or if Significantly Ltd sells all or part of its 13.67% stake. Considerably has been in search of a purchaser as it has been not able to increase income to fund its share of the Sangomar venture.
Woodside’s offer is subject to approval from the federal government of Senegal and Cairn shareholders.
Disclaimer: Fusion Media would like to remind you that the facts contained in this web site is not essentially actual-time nor exact. All CFDs (stocks, indexes, futures) and Forex costs are not furnished by exchanges but instead by market makers, and so selling prices may possibly not be accurate and may possibly differ from the actual market price, that means price ranges are indicative and not appropriate for trading uses. Consequently Fusion Media doesn`t bear any accountability for any buying and selling losses you may incur as a consequence of working with this data.Fusion Media or anybody associated with Fusion Media will not settle for any liability for loss or damage as a result of reliance on the details together with information, quotations, charts and buy/sell alerts contained inside this web site. Make sure you be thoroughly knowledgeable regarding the threats and expenditures linked with trading the monetary markets, it is one particular of the riskiest investment forms attainable.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Stocks like Citi and Oracle are cheap and properly-positioned analysts say

(This tale is for BuddyMantra Professional subscribers only.)The market endured an additional 7 days of volatility, but analysts urged traders to continue to be...

US Presedential election: Fail to remember the President. Senate might subject extra for markets

By Michael P. Regan and Felice Maranz Though quite a few traders are zeroing in on the US presidential election in November, a trickier political...

Recent Comments