Sunday, June 23, 2024

Capricorn FPSO leaves Singapore after sale to Woodside

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Capricorn energy The market was updated on Wednesday after Woodside Petroleum announced it would depart Singapore for a floating production, storage and offloading (FPSO) vessel to develop the Sangomar oil field off the coast of Senegal.

The London-listed company said the development could result in it receiving a contingent payment of either $25 million or $50 million, as stipulated in the sales agreement.

The report states that eligibility for conditional payments will be based on first oil being produced in the first half of 2024, at an average Brent crude price of $55 per barrel during the first six months of production or He said it depends on whether the $60 per barrel threshold is exceeded.

If first oil occurred before June 30, 2024, the conditional payment was expected to be paid in early 2025, after determination of the average oil price and 30 consecutive days of production.

Capricorn said first oil is defined as the first continuous 72-hour production period from the Sangomar field, during which a minimum of 30,000 barrels were produced for sale.

In either scenario, Woodside would not be obligated to make additional payments if the average price of Brent crude oil remains below $55 per barrel or if first crude oil production extends beyond the first half of 2024. Become.

Report by Josh White of Sharecast.com.

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