FAR Limited

FAR Limited was founded in 1984. By February 2021, the company has assets in West Africa, East Africa and Australia.

History

2021: Lukoil buys FAR Limited for $171.2 million

In mid-February 2021, Lukoil's intention to acquire the Australian oil and gas company FAR Limited for 220 million Australian dollars ($171.2 million) became known. The Russian company is going to pay for the transaction with its own cash.

Lukoil called the purchase of FAR profitable for shareholders of the Australian company and expressed their readiness to provide FAR with "reasonable financial support," which will allow it to cope with the consequences of the previously announced default on the payment of a total of $44 million. FAR twice defaulted on payments related to the implementation of the RSSD project: in January 2021 for $19.9 million and in February for $24 million.

Lukoil acquires Australian oil and gas company FAR Limited for $171.2 million

FAR postponed the shareholder meeting, which was scheduled for February 18, 2021. It was planned to consider the sale of a stake in the Senegalese project RSSD to the Australian company Woodside.

Earlier, Woodside, taking advantage of the pre-emptive right, did not allow Lukoil into the Senegalese project Rufisque, Sangomar and Sangomar Deep Offshore (RSSD). The Russian company claimed to acquire 40% in the RSSD project, an agreement was concluded with Cairn Energy in the amount of $300 million. The agreement also provided for the possible payment of a bonus to the seller in the amount of up to $100 million after the start of production.

Woodside management explained that the acquisition would eliminate potential uncertainty about possible US sanctions against the Sangomar project. At the same time, the Australian Woodside announced its intentions to look for a new partner in the project.

According to Lukoil's estimates, the recoverable hydrocarbon reserves of the Sangomar field amount to about 500 million barrels of oil equivalent, the field is planned to be launched in 2023 with a design oil production level of five million tons per year.^[1]

Notes