Australian Woodside petroleum blocks ONGC Videsh’s bid in Senegal
The move dashes the ONGC subsidiary’s hopes of its first bargain hunt in the aftermath of the April oil price crash.
NEW DELHI: Australian energy major Woodside Petroleum has exercised its right of first refusal (RoFR) to checkmate ONGC Videsh’s bid to buy 15% stake in a $4-billion Senegal oilfield. The move dashes the ONGC subsidiary’s hopes of its first bargain hunt in the aftermath of the April oil price crash.
Sources told TOI that Woodside informed stakeholders and the Senegal government last week of its intention to preempt ONGC Videsh’s deal to acquire another Aussie firm FAR’s 15% in the Sangomar project with a matching offer, estimated at $111 million and further investment of $600 million.
This is a similar move Woodside made in August to block Russian LukOil from buying independent Scottish explorer Cairn Energy’s 36.4% stake for $400 million. This has recently been cleared by the Senegal government. ONGC Videsh’s deal size, sources said, indicated more than 60% discount to LukOil’s offer for acquiring Cairn Energy’s stake A spokesperson for ONGC confirmed the development and said the company was evaluating its options but raising the offer for FAR’s stake was not one
of them. “The acquisition by Woodside would be subject to satisfaction of some conditions precedent, including the approval of the government of Senegal,” the spokesperson said.
TOI had reported on November 11 that ONGC Videsh’s deal would be subject to Woodside waiving its first right of refusal within 30 days.