Cairn has entered into a conditional agreement to sell to Woodside its entire participating interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Production Sharing Contract together with a corresponding proportion of the rights, obligations and liabilities under the RSSD Joint Operating Agreement. The agreement is pursuant to the exercise by Woodside of its pre-emption rights and is on the same terms and conditions as the Sale and Purchase Agreement entered into with LUKOIL on 24 July 2020.
Cairn will publish a shareholder circular later today relating to the proposed sale to Woodside (the “Circular”), having received approval of the Circular from the Financial Conduct Authority.
On 27 July 2020, Cairn announced that it had entered into an agreement with LUKOIL relating to the proposed sale of Cairn’s entire interest in the RSSD Contract Area, including the Sangomar development, offshore Senegal. On 17 August 2020, Cairn announced that Woodside had exercised its right to pre-empt the transaction on the same terms and conditions.
Under the UK Listing Rules, the transaction constitutes a Class 1 transaction and is therefore conditional on the approval of Cairn’s shareholders, by a simple majority of votes cast. Completion of the transaction is also subject to the approval of the Government of Sénégal.
KeyFacts Energy: Woodside Senegal country profile