(Ecofin Agency) - Australia’s FAR announced on Oct 29 that the investment planned to develop the SNE oil field in Senegalese waters increased by 40% to $4.2 billion, as the project partners have decided to buy rather than lease a Floating Production Storage and Offloading (FPSO) vessel for the project.

As a result, a large part of the field's development will be financed by debt, the company explains. The project's break-even point has increased from $22 per barrel over the life of the field to $33 per barrel. For Cath Norman, FAR's MD, the high profitability of the project means that the value of FAR's shares should triple by the first oil delivery scheduled for late 2022.

FAR currently holds 15% of the project, but its stake will be reduced to 13.67% if the Senegalese government exercises the option to increase its own. SNE will produce up to 100,000 barrels of oil per day. The field will also produce natural gas condensate.

Olivier de Souza