Capricorn Energy plc’s expected $25 – $50m contingent payment hangs in the balance after first oil was moved to next year from the Sangomar field development, offshore Senegal.
SPA AGREEMENT
The change of date comes after Australian operator Woodside Petroleum’s today targeted first oil, initially due in late 2023, to mid-2024.
Capricorn said that it would receive payment for first oil only during the first half of 2024 and if the average Brent oil price during H1 production exceeded the $55/bbl or $60/bbl thresholds, in accordance with the sale and purchase agreement.
The company receives no payment if first oil is achieved later than H1 2024.