(Reuters) - Australia’s Woodside Petroleum Ltd said on Friday its $4.2 billion Sangomar project, Senegal’s first oil development block, is all set to roll into motion as it has received all necessary approvals.
The offshore oil project, which is expected to strike first oil in the next three years, has entered the “execute phase,” with operator Woodside issuing notice to proceed with drilling, subsea construction and installation contracts, the oil and gas company said in a statement.
The project, run as a joint venture between Woodside Energy, Cairn Energy Plc, Far Ltd and Senegal state-owned Petrosen, is estimated to target 231 million barrels (MMbbl) of oil resources in its initial phase of development.
“We look forward to progressing the project towards first oil in early 2023,” Woodside Chief Executive Peter Coleman said.
The firm’s experience in offshore floating production storage and offloading developments would support its efforts to achieve delivery on cost and schedule, Coleman added.
Senegal authorized the West African country’s first oil development on Thursday, galvanizing partners in the project who are eager to push ahead even as they await the outcome of arbitration over a dispute with Far Ltd.
Far, a minority partner in the project, contends it was denied its right to pre-empt the sale of a 35% stake in the Sangomar field by ConocoPhillips’ to Woodside in 2016.
Reporting by Devika Syamnath in Bengaluru and Sonali Paul in Melbourne; Editing by Rashmi Aich