Woodside Petroleum matches ONGC unit offer to buy FAR's Sangomar stake

Australia's Woodside Petroleum Ltd said on Thursday it had exercised its right to match an offer by a unit of India's cru Videsh Ltd to buy FAR Ltd's stake in the Sangomar oil project in Senegal.

FAR had said last month it would exit the troubled $4.2 billion Sangomar project off Senegal by selling its 15% stake to the ONGC unit for $45 million.

"The acquisition is value-accretive for Woodside shareholders and results in a streamlined joint venture which will assist in our targeted sell-down in 2021," Woodside Chief Executive Officer Peter Coleman said in a statement.

Woodside said its offer would include $45 million payment and reimbursement of FAR's share of working capital from Jan. 1 to completion, similar to the deal between FAR and ONGC.

The offer is subject to approval by the Senegal government and FAR shareholders.

Woodside's stake in the Sangomar joint venture will increase to 90% and the company will remain as operator.

It plans to commence drilling next year in order to meet its targeted first oil in 2023.

The Perth-headquartered firm in August had exercised its right to match a $400 million offer by Russia's Lukoil to buy Cairn Energy's stake in the project, making it the largest shareholder.