The binding transaction followed Woodside’s exercise of its pre-emptive rights, after Capricorn in July struck a deal with Russian producer LukOil to divest of its 40% interest in the RSSD project for a cash consideration of up to $400-million, plus the reimbursement of development capital expenditure incurred since January 2020.

Woodside told shareholders that the completion of the acquisition was subject to government of Senegal approval, as well as Capricorn parent company Cairn Energy shareholder approval.

Woodside is targeting completion of the transaction in the fourth quarter of this year. Following the completion, Woodside’s interests in the project would increase to 68.33% in the Sangomar exploitation area and to 75% in the remaining RSSD evaluation area.