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LUKOIL To Buy 40% In Senegal's RSSD Oil Project

LUKOIL To Buy 40% In Senegal's RSSD Oil Project

PJSC LUKOIL (hereinafter referred to as the Company) has entered into an agreement with Cairn Energy to acquire a 40% stake in the RSSD project (Rufisque, Sangomar and Sangomar Deep) in the Republic of Senegal. The transaction amount is $300 million with cash payments, according to the press service of the company.

In addition, the agreement provides for the possible payment of a bonus to Cairn Energy in the amount of up to 100 million US dollars after the start of production. The transaction will be closed after fulfilling the deferred conditions, including approval by the government of the Republic of Senegal.

The total area of the blocks included in the project is 2212 square km. The Blocks are located on the deep-water shelf of the Republic of Senegal, 80 km from the coast. The sea depth in the area of blocks is 800-2175 m. Two deposits have been discovered within the blocks: Sangomar and FAN.

A final investment decision (FID) was made for the Sangomar field in early 2020, and work has begun on its development. According to the Company's estimates, the recoverable hydrocarbon reserves of the Sangomar field are about 500 million boe. The field is to be Launched in 2023, with a projected oil production level of 5 million tons per year.

The RSSD project is implemented under the terms of a production sharing agreement. Project operator Woodside is a company with a share of 35%. Other partners are FAR (15%) and state-owned Petrosen (10%).

"The acquisition of a stake in a project with a proven resource base at an early stage of development is fully consistent with our strategy and allows us to strengthen our presence in West Africa. Participation in the project with professional international partners will allow you to gain additional experience in working on offshore fields in the region, " said Vagit Alekperov, President of PJSC LUKOIL.