Woodside Energy has completed the acquisition of shares in ConocoPhillips Senegal, which holds a 35 percent interest in three exploration blocks offshore Senegal, for $440 million including net customary adjustments of about $90 million. The completion of this transaction gives Woodside a 35% interest in three exploration blocks, including the SNE and FAN deep-water oil discoveries.

This is coming after FAR Ltd, ConocoPhillips's partner on the SNE field, tried to prevent the arrangement between ConocoPhillips and Woodside in August, saying that ConocoPhillips had broken their joint operating agreement.

According to Woodside CEO, Peter Coleman, the company would be working with partners to commercialize the promising SNE and FAN deep-water oil discoveries off the coast of Senegal, Reuters reports. “We look forward to working with the Government of Senegal and joint venture participants Cairn Energy, FAR Limited, and Petrosen, the Senegal National Oil Company, to progress the commercial development of the SNE and FAN discoveries,” he said.

The three offshore exploration blocks, Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore, had a net carrying value of about $285 million as at September 30, 2016 and ConocoPhillips anticipates to make out a gain on the sale in Q4 of 2016.

“We are pleased to complete this transaction with Woodside. We experienced a transparent and cooperative relationship with the Senegalese government and appreciated their support throughout a very successful exploration and appraisal campaign. By completing this sale, we are progressing our broader exit from deep-water exploration, which will further increase our capital flexibility and reduce the cost of supply of our portfolio,” Matt Fox, executive vice president, Strategy, Exploration and Technology of ConocoPhillips, said.

Anita Fatunji