Capricorn Energy plc said that first oil was still possible during H1 2024 from the Sangomar field after the FPSO today began its way to the offshore Senegal development.
PRODUCTION
Operator Woodside Petroleum previously deferred first oil from late 2023 but today announced the FPSO’s departure from Singapore for the field.
Capricorn may be entitled to a contingent payment of either $25m or $50m if the average Brent oil price during the first six months’ production exceeds $55 or $60 per barrel thresholds and first oil is achieved during the first half of 2024.
The contingent payment is expected early 2025 if first oil, defined as continuous 72-hours production of at least 30,000 barrels, is achieved before 30 June 2024.
Capricorn is also preparing to dispute a tax notice relating to the product sharing contract over Sangomar.