FAR said in March it had failed to secure debt to fund the more than $300 million it needs for its share of the project after global oil prices collapsed amid the coronavirus pandemic. In a further effort to save cash, FAR said is looking to bring in a partner for its Gambian assets before proceeding with drilling at the project in 2021.
Australian listed oil and gas company FAR Ltd said on Wednesday its unit had defaulted on its obligations to the Sangomar joint venture project in Senegal while the company looks to save cash and sell its interest in the project. Sangomar, operated by Australia's Woodside Petroleum , has been a pain-point for FAR in recent months after the company failed to secure debt to fund it, following a plunge in global oil prices amid the coronavirus pandemic. FAR said it was still considering selling all or part of its interest in the project, adding that it would forfeit its interest without ...
Any hopes that Asia's oil and gas industry would escape the worst of the Covid-19 shock evaporated last week as an unprecedented plunge in oil prices reverberated around the globe. Lenders in Asia are hurriedly reassessing their exposure after US oil prices turned negative for the first time in history and more signs emerged of stress in the corporate sector. Chinese oil refiner Shandong Qingyuan Group has asked banks to defer the first principal payment on a US$955m three-year loan by a year to June 2021.
Woodside and FAR said on Friday an International Chamber of Commerce panel had ruled that FAR did not have a pre-emptive right to match the offer for the 35% stake in the Sangomar project that ConocoPhillips sold to Woodside in 2016 for just $350 million. FAR said it was reviewing the arbitration award.