Australian junior Far Ltd has struck a deal to sell its stake in the Sangomar oil and gas field off Senegal to operator Woodside Petroleum for $166.6 million, a move that jeopardises a takeover offer by private investment fund Remus Horizons.

Far had planned to offload its 13.67% stake in the field and its 15% interest in the wider Rufisque, Sangomar and Sangomar Deep exploration licence to India's ONGC Videsh.

However, Woodside exercised its pre-emption right, as it did before when former partner Cairn wanted to sell to Russia's Lukoil.

Far reported on Wednesday that it executed a sale and purchase agreement with Woodside on 19 January "on the same terms and conditions as the previously announced sale to ONGC Videsh Vankorneft".

Far's shareholders are due to consider authorising this agreement with Woodside at an 18 February meeting.

The company said it will provide shareholders with further information in advance of that meeting to enable them to consider the Woodside sale in the context of the Remus proposal, "should Remus provide a binding proposal prior to the shareholders’ meeting".

The Remus proposal — unveiled last month — is non-binding and conditional on the Woodside sale not occurring.

Remus Horizons, which is regulated by the Guernsey Financial Services Commission, is the petroleum fund of UK-domiciled Remus Corporation, which said on 18 January that it had "sourced finding" for the acquisition of Far, but admitted that Covid-19 restrictions are hampering its efforts to finalise deals.

"Final regulatory approvals and the subsequent onboarding of the investor capital are subject to considerable delay, as a direct result of the Covid-related restrictions," Remus added.

Chief executive Sath Kanagarajah said: "Whilst we share the ongoing frustrations of Covid with most businesses, the effect on Remus has escalated to an unforeseen extent.

"As a UK-domiciled company with London-based advisers, almost all our internal and external team are confined to their homes by law. Indications of a return to relative normality after the Christmas break have proved optimistic and even the simplest of tasks, and the most basic forms of communication, remain significantly hampered."

Finance

Far in $167m deal to sell Senegal stake to Woodside, casting doubt on takeover approach