(Ecofin Agency) - Woodside’s is currently facing challenges with the procurement of exploration assets in Senegal as junior explorer, FAR Limited, has said that it has pre-emption rights over the planned sale.FAR and ConocoPhillips’ are joint venture partners in the Senegal exploration assets and the junior explorer believes that since the latter did not comply with the terms of the joint venture partnership, the pre-emption period of the assets cannot begin.

“ConocoPhillips has confirmed to FAR Ltd that it has a right of pre-emption over the proposed sale of ConocoPhillips interests in Senegal to Woodside Petroleum. FAR advises that, in its opinion, and as supported by legal advice, ConocoPhillips has failed to comply with the terms of the joint operating agreement in relation to the proposed sale of its interests in the Senegal project. As a consequence, FAR believes that the pre-emption period has not yet commenced,” the company said a statement.

In July, ConocoPhillips signed an agreement with Woodside for the purchase of exploration assets, whereby the latter would pay $350-million for all the shares in ConocoPhillips’ Senegal business, not excluding a 35% working interest in a production sharing contract covering three offshore exploration blocks with the Senegalese government.This agreement also includes the SNE and FAN deep-water oil finds. Woodside estimates the SNE discovery to hold 560-million barrels of recoverable oil.

Both parties; ConocoPhillips and FAR, had been advised by the Senegalese Government to reach a swift conclusion on the dispute, Mining Weekly reports.

Anita Fatunji