Woodside Petroleum Limited (ASX: WPL) announced this afternoon that the Sangomar Field Development Phase 1 has been approved by the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture and has entered the 'execute phase' of activities.
Woodside, as the operator of the RSSD joint venture, has executed the purchase contract for the floating production storage and offloading (FPSO) facility and issued full notices to proceed for the drilling and subsea construction and installation contracts.
The RSSD joint venture has received the relevant regulatory approvals to proceed, including the execution of the Host Government Agreement with the Government of Senegal following the grant of the 'Exploitation Authorisation'.
Phase 1 of the development will target an estimated 231 million barrels of oil resources from the lower, less complex reservoirs, and an initial pilot phase in the upper reservoirs.
As a result of the first reserves booking for the Sangomar Development, the Woodside reserves increased by 60 million barrels at the 2P confidence level.
Key contractors for the development are: MODEC for the purchase of an FPSO with an oil processing capacity of 100,000 barrels per day. Subsea Integration Alliance will do the construction and installation of the integrated subsea production systems and subsea umbilicals, risers and flowlines. Finally, Diamond Offshore has been selected for two well-based contracts for the drill rigs Ocean BlackRhino and Ocean BlackHawk.
Woodside CEO Peter Coleman said: "We look forward to progressing the project towards first oil in early 2023 and expect that our experience in offshore FPSO developments will support its delivery on cost and schedule.
"We are grateful for the ongoing support of the Government of Senegal and will be working with all stakeholders to ensure that the country's first oil project delivers enduring benefits to its people."
