PARIS-based arbitration proceedings initiated by Australian explorer Far Ltd with US mid-tier ConocoPhillips over a dispute related to the equity farm-down of acreage off Senegal will start in July, writes Barry Morgan.

Far in 2017 petitioned the International Chamber of Commerce to start arbitral proceedings to resolve a dispute concerning the Joint Operating Agreement in which ConocoPhillips purported to sell its 35% stake in the Rufisque-Sangomar-Sangomar Deep (RSSD) block to Australia's Woodside Petroleum.

RSSD partner Far alleges the transaction was conducted without due regard for Far’s pre-emption rights.

The farm-down was also meant to herald the transfer of RSSD operatorship from Cairn Energy to Woodside ahead of development of the $4 billion, five-billion-barrel deep-water SNE oil and gas field; which is still slated to reach the final investment decision before year-end, with first oil seen in 2022.

In addition to Woodside’s stake, equity in RSSD is shared by Cairn (40%), Far (15%) and Senegal state-owned Petrosen (10%).

Under the new dispensation, Petrosen is entitled to a 10% carry but may acquire another 8% in each oil scheme and 10% in each gas venture – and Woodside is unlikely to pay on its behalf.

Upstream understands all RSSD partners are in the market to farm down equity in the SNE project.

Weekly

ConocoPhillips and Far arbitration to begin in Senegal acreage dispute