Woodside to buy ConocoPhillips’ oil assets in Senegal

Woodside to buy ConocoPhillips’ oil assets in Senegal

Australia’s Woodside Petroleum (ASX:WPL) has agreed to buy ConocoPhillips’ (NYSE:COP) deepwater stakes off Senegal, including one of the world’s most favourable recent oil finds, for US$350 million.

The acquisition includes a 35% interest in the 560 million barrel SNE deep water oil discovery and the FAN oil discovery offshore.

Woodside has the option to become operator for development and production of the fields.

Peter Coleman, Woodside chief executive said: “We are taking advantage of our balance sheet to acquire a world-class asset that fits well with our capabilities, offers significant future upside in exploration and line-of-sight to near term oil production.”

Woodside has already targeted the area off Senegal for exploration with a stake in the AGC Profond block in a zone between Senegal and Guinea Bissau.

ConocoPhillips said last year it was looking to sell its deepwater exploration stakes and announced on Thursday that the sale of the Senegal holding was an “important milestone”.

The fields are currently operated by Britain’s Cairn Energy Plc (LSE:CNE), which owns 40% and is looking to sell down its stake.

Australia’s FAR Ltd. (ASX:FAR) owns 15% of the fields and Senegal’s state-owned Petrosen holds 10%.