17 Dec 2018
Senegal Update
The enclosed announcement has been reported by Woodside Energy with regards to the SNE development
in Senegal in which Cairn has a 40% working interest.
Enquiries to:
Analysts / Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Linda Bain, Christian Goodbody
Cairn Energy PLC Tel: 0131 475 3000
Patrick Handley, Will Medvei
Brunswick Group LLP Tel: 0207 404 5959
NOTES TO EDITORS
Cairn is one of Europe's leading independent oil and gas exploration and development companies and has been listed on the London Stock Exchange for 30 years. Cairn has explored, discovered, developed and produced oil and gas in a variety of locations throughout the world as an operator and partner in all stages of the oil and gas lifecycle.
Cairn’s exploration activities have a geographical focus in North West Europe, West Africa and Latin America, underpinned by interests in production and development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway, Senegal and Mexico.
For further information on Cairn please see: www.cairnenergy.com
SNE FIELD DEVELOPMENT- PHASE 1 COMMENCES FEED ACTIVITIES
Woodside advises that the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture1 has agreed to commence front-end engineering and design (FEED) activities following the award of the subsea FEED contract to Subsea Integration Alliance2 for the SNE Field Development-Phase 1 (SNE development) offshore Senegal. Further FEED contracts are targeted to be awarded in early 2019.3
The FEED work involves undertaking activities required to finalise the costs and technical definition for the proposed development to enable a final investment decision, targeted for mid-2019.3
Woodside CEO Peter Coleman said the decision to commence FEED activities was a significant step towards the development of Senegal’s first oil project.
“We plan to progress the SNE development towards the earliest possible commercialisation of the discovered resources. Completing FEED activities will be a key enabler of a final investment decision.
“We are also excited to be moving forward on the SNE development as it is a key pillar of Horizon Two of our growth strategy.
“As part of FEED activities, the RSSD joint venture will continue working with the Government of Senegal, local communities and our contractors to realise the potential opportunities and benefits from this nationally significant development,” he said.
Commencing FEED activities follows approval by the Senegalese Minister of Petroleum and Energies of Woodside assuming the role of operator, and the RSSD joint venture’s submission of the SNE Field Development and Exploitation Plan to the Government of Senegal.
Phase 1 of the development will target an estimated 230 MMbbl of oil resources (P50 gross) from the lower, less complex reservoirs and an initial phase in the upper reservoirs. The FPSO is expected to have a capacity of around 100,000 bbl/day, with first oil production targeted in 2022.
In parallel to the commencement of FEED activities, the RSSD joint venture continues to progress project financing and the Environmental and Social Impact Assessment.
1 The RSSD joint venture comprises Capricorn Senegal Limited (a subsidiary of Cairn Energy), Woodside, FAR Ltd and Petrosen (the Senegal National Oil Company).
2 Subsea Integration Alliance is a worldwide non-incorporated partnership between OneSubsea, Schlumberger and Subsea 7 developed to jointly design, develop, and deliver integrated subsea development solutions through the combination of subsurface expertise, subsea production systems (SPS), subsea processing systems, subsea umbilicals, risers and flowlines systems (SURF), and life of field services.
3 Targets subject to all necessary joint venture and regulatory approvals.