In light of the coronavirus restrictions and drop in oil prices posing a risk for oil projects globally, Woodside Petroleum, Cairn Energy Plc, FAR Ltd. and the government of Senegal have shown concern over their $4.2 billion Sangomar oil project offshore Senegal and are currently discussing the projected time frame of the project.
The offshore oil project – Senegal’s first oil development – is critical to Woodside’s growth plans over the next seven years. Woodside and its partners recently started developing the offshore oil project and received a final investment decision (FID) in January, with the aim to start production in 2023.
“In taking a positive FID in January, we considered short-term price fluctuations and long-term forecasts. However, with the recent COVID-19 implications on markets, our contractors and government, it is prudent to take stock on significant emerging delivery uncertainties,” Woodside commented.
“Disruptions caused by the COVID-19 pandemic and the crash in oil price are presenting challenges to our debt process,” said a representative from FAR, the exploration company that discovered the Sangomar field in 2014.
FAR currently has no other projects underway.