ONGC Videsh signs agreements to acquire FAR stake in Senegal blocks

OVL will acquire 13.6667 per cent participating interest for an upfront consideration of $45 million and contingent payments payable annually

ONGC Videsh (OVL) has signed definitive binding agreements with Australia’s FAR for acquiring 13.6667 per cent participating interest in exploitation area of Sangomar field and 15 per cent participating interest in remaining contract area of Rufisque, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Block in Senegalese offshore.

The acquisition involves (i) an upfront consideration of $45 million with customary adjustments including the opening working capital as of January 2020 and the cash calls paid or to be paid from January 2020 onwards until completion (excluding any default interest paid / payable by FAR for any delay in cash call payments).