ONGC’s arm signs definitive binding agreements with FAR Senegal RSSD SA
11th Nov 2020

Oil and Natural Gas Corporation’s (ONGC) overseas investment arm -- ONGC Videsh (OVL) through its wholly owned subsidiary has signed definitive binding agreements with FAR Senegal RSSD SA (Seller), a wholly owned subsidiary of FAR (FAR) on for acquiring 13.6667% participating interest in Exploitation Area (Sangomar Field) and 15% participating interest in Remaining Contract Area (Exploration Area) of Rufisque, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Block, Offshore Senegal. Woodside Energy (Senegal) BV (Woodside), Capricorn Senegal (Cairns) and Le Societe des Petroles du Senegal (Petrosen - the national oil company of Senegal) are other partners in the RSSD Block.

The acquisition by ONGC Videsh is subject to satisfaction of customary conditions precedents including approvals of Senegal regulatory authorities, FAR shareholders’ approval, nonexercise / waiver of pre-emption by joint venture partners and termination of certain third party agreement. The Sangomar Field, currently under development, is located in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin (MSGBC Basin), Offshore Senegal, covering an area of 772 sq. kms. and is planned to go on production in 2023 under Phase-1 development. The completion of the present transaction would mark ONGC Videsh entry in Senegalese offshore in a significant project under development and is consistent with its strategic objective of adding high impact exploration and near-term production assets to its existing E&P portfolio.

ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.