Woodside, FAR at odds over Senegal deal

Energy giant Woodside Petroleum says it has completed its $US440 million purchase of ConocoPhillips’ stake in an oilfield off the coast of Senegal, despite leaving a contractual dispute with one of the project’s partners unresolved.

Perth-based Woodside said in a statement today that it had completed the acquisition of Conoco’s 35 per cent working interest in three offshore exploration blocks in Senegal, for a purchase price of $US350 million plus customary adjustments of about $US90 million.

After the deal was announced in July, the project’s 15 per cent stakeholder, ASX-listed explorer FAR, claimed a right of pre-emption for buying Conoco’s share.

Today, Far told the market that the deal was still subject to the rights of the partners to pre-empt.

“Far believes a valid pre-emptive rights notice has not been issued to the JV partners by Conoco,” it said.

“Far has invoked its right to resolve this dispute in accordance with the joint operating agreement.”

However, Woodside chief executive Peter Coleman has previously said that from the company’s view, there were no applicable pre-emptions, and that the project’s 40 per cent stakeholder Cairn Energy had been supportive of the deal with Conoco.

Woodside shares were 0.6 per cent lower to $28.13 each at 10:30am.