Woodside confirms oil production at Senegal's Sangomar field
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The news: Woodside Energy has drilled the first oil from the Sangomar field development, Senegal's inaugural offshore oil project.
The numbers: The Sangomar project is being progressed through a joint venture comprising Woodside as the operator with an 82% interest, and state-owned Societé des Petroliere du Sénégal which holds an 18% interest.
Woodside said the project's phase one project cost estimate remains within the provided range of USD4.9 billion ($7.42 billion) to USD5.2 billion. The phase one development is a deepwater project with a capacity of 100,000 barrels per day, and subsea infrastructure that is designed to allow subsequent development phases.
The context: Woodside confirmed that the drilling campaign at Sangomar is ongoing and it expects to continue commissioning activities and ramp up production through 2024.
The energy major noted that its acquisition of interests in the joint venture from Capricorn Energy and FAR included certain contingent payments, which remain subject to ongoing production performance and oil price.
What they said: Woodside CEO Meg O'Neill said: "First oil from the Sangomar field is a key milestone and reflects delivery against our strategy. The Sangomar project is expected to generate shareholder value within the terms of the production sharing contract".
The source: ASX announcement
