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FAR Provides Quarterly Operations Update

RSSD (Rufisque, Sangomar and Sangomar Deep) Senegal

The Rufisque, Sangomar and Sangomar Deep (‘RSSD’) Joint Venture continued to progress construction activities for the Sangomar Field Development. The construction of the FPSO and other equipment for the Phase 1 development is progressing within budget. Interpretation of the recent high-definition multiazimuth 3D marine seismic survey over the Sangomar field is ongoing and will be incorporated into development planning and resource assessment.

Phase 1 of the development is planned to target 231 mmbbls of oil resources from the lower reservoirs in the Sangomar Field, and an initial pilot phase in the upper reservoirs.
The 2021 work program and budget has now been approved by the joint venture, along with key logistics contracts relating to marine vessels and aviation services.
During the period Cairn announced the sale of its entire 40% RSSD interest to Lukoil that was subsequently pre-empted by Joint Venture partner and Operator, Woodside. The transaction remains subject to certain conditions before completion.

Also during the period, and as expected, the Senegal state oil company, Petrosen, increased their stake in the project from 10% to 18%. If Woodside successfully acquires Cairn’s interest, the working interest of the remaining joint venture partners in the Sangomar exploitation area will be Petrosen 18%, FAR 13.67%, and Woodside 68.33%. The working interest in the remaining RSSD evaluation area (including the FAN and SNE North oil discoveries) will be Petrosen 10%, FAR 15% and Woodside 75%.

Offshore, The Gambia Blocks A2/A5

During the quarter FAR continued with the Full Waveform Inversion (FWI) processing of the 600km2 3D seismic survey that was acquired in A5 during Q1 2020. It is intended that this FWI processing will be expanded to include the remaining 3D seismic datasets over A2 and A5, therefore providing single merged 3D seismic data across the blocks.

These data will be used to significantly improve geological interpretation and prospect selection in the future. FAR has continued in the quarter with planning for the Bambo-1 well. This well is being designed to test multiple stacked objectives including the Bambo 390, Soloo 410 and Soloo 440 (see Table below). Execution of the Bambo-1 well
project is currently on hold since Q2 2020 when a decision was made with the
JV participants and Ministry of Petroleum and Energy to temporarily suspend the project due to the COVID-19 pandemic.

FAR and its partner are continuing to review the COVID-19 situation with a view to reactivate the project when it can be safely and efficiently delivered. The Environmental and Social Impact Assessment (ESIA) for the drilling project has progressed this quarter with the completion of the public consultation process.

 

Guinea-Bissau
The Sinapa and Esperanca licences are currently within an Extension period of the initial Exploration Term as provided for under their respective Agreements for Joint Venture Participation (‘AJVP’) where a subsidiary of Svenska Petroleum Exploration AB (‘Svenska’) is Operator of the Joint Ventures.

On 16 October, FAR was advised by the Operator that the Sinapa and Esperanca Licence extensions were formally approved via Presidential decree, Bissau Government Decrees N 22/2020 ( Esperança Exploration License 12th Amendment) and N 23/20 (Sinapa Exploration License 16th Amendment).

The current exploration period has been extended to expire on 2nd October 2023.
Operations in the licenses, including preparation for drilling Atum-1X, have been suspended due to COVID-19. FAR is working with the Operator to help identify and protect the Joint Venture from any further cost exposures due to COVID-19 shutdown.

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