Woodside looks at blocking Lukoil Senegal project

Woodside looks at blocking Lukoil Senegal project

Australia's Woodside Petroleum is considering whether to block Lukoil from becoming a partner in the $4.2 billion Sangomar oil project off Senegal, after the Russian firm agreed to buy Cairn Energy's Senegal assets.

Woodside, 35 per cent owner and operator of the Sangomar project, has a right to match Lukoil's $400 million offer for Cairn's 40 per cent stake in the Rufisque, Sangomar and Sangomar Deep (RSSD) contract area, Reuters reported.

"This transaction is subject to joint venture and government approvals," a Woodside spokeswoman said in emailed comments.

"Woodside will consider all its options," she said.

Lukoil's acquisition of Senegal assets bolsters the company's West African expansion plans.

"News that Lukoil is looking to expand in Western Africa comes as no surprise as the region has seen a flurry of spending from the company over the last decade - with its acquisition of a stake in major projects such as the Pecan field in Ghana, the Bonga Southwest/Aparo field in Nigeria, the Marine XII license offshore in the Republic of Congo, and the Fortuna LNG project in Equatorial Guinea,“ said Conor Ward, Upstream Analyst at GlobalData. 

"Lukoil hopes to see major growth from these projects in the next decade as