Capricorn Energy PLC on Tuesday noted Woodside Energy Group Ltd’s update on the
Sangomar floating production storage and offloading facility offshore Senegal.
It was originally expected that the project would begin delivering the targeted 100,000 barrels of oil per day by the end of the year, but due to unexpected remedial work, first oil is now expected to be delivered in mid-2024.
Capricorn is an Edinburgh-based upstream energy company with assets in the UK North Sea, Mexico, Suriname, Mauritania and Egypt. The company said it remains exposed to a contingent payment of between $25 million and $50 million if first oil is achieved by the updated timeframe, and if the average Brent oil price during the first six months of production exceeds $55 per barrel of crude oil.
This results from a sale purchase agreement after Woodside bought Capricorn’s subsidiary Capricorn Senegal Ltd’s stake in the Sangomar field in 2020.
Capricorn noted, however, that there will be no payment if first oil is achieved after the first half of next year.
Woodside is a Perth-based energy company. It also announced on Tuesday that the total cost of the Sangomar project will be between $4.9 billion and $5.2 billion, around seven per cent and 13% higher than the previous estimate of $4.6 billion.
The company also added that at June 30, the project was 88% finished, with 12 out of 23 wells drilled and completed.
Woodside has an 82% operating interest in the project, while the remaining 18% is owned by Dakar-based Petrosen Holding.
Shares in Capricorn were down 11% at 172.00 pence each in London on Tuesday morning, while Woodside shares closed at A$35.55 each, up 1.2% in Sydney.
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