Australian energy company FAR Ltd. said it was taking a dispute over the sale of emerging oil prospects offshore Senegal to the international courts.
Cairn Energy and two Australian energy companies, FAR Ltd. and Woodside Petroleum, are leading in the efforts to capitalize on the oil potential off the coast of Senegal and broader West African basins.
Parties to the agreement are at odds over the transfer of assets from Conoco Phillips to Woodside more than a year ago. FAR Ltd. said last week that Woodside was premature in its efforts to take over as the operator, though Woodside said FAR's objections were putting development timelines at risk.
On Tuesday, FAR said it was taking the issue to an international court in Paris to resolve the matter. Woodside had no corresponding comments on the arbitration request from its Australian counterpart.
This issue centers on developing the SNE oil field off the coast of Senegal, hailed as one of the largest discoveries ever made when it was declared in 2014. The companies tied to Senegal say that SNE, combined with other exploration developments, holds more than 1.5 million barrels of oil.
Cairn had no comment on the issue. The company said last month it had enough data from the SNE field to start preparations for submitting development plans to the government next year.
FAR in a statement last week said Cairn is the operator and responsible for the project development schedule.
An analyst at consultant group Wood Mackenzie said last week the row was indicative of Senegal's oil potential.
Balance assurances give modest lift to oil prices
Crude oil prices edged slightly higher in early Monday trading after the Saudi oil minister injected a note of optimism into an otherwise lackluster market.
Crude oil prices moved under $50 per barrel in early June on signs that supply-side strains were easing slower than expected. Some of the pressure has come from weak demand for consumer fuels like gasoline in the United States, the … read more
