CAIRN Energy is facing potential complications with plans to develop a big find off Senegal amid a dispute between two of its partners.
Led by chief executive Simon Thomson, Cairn Energy hopes the SNE find may be brought into production in 2021.
Partners in the licence include Australian firms FAR and Woodside Petroleum, which expects to take over operatorship of the relevant licence from Cairn.
However Woodside announced that FAR has said it will not support the company taking over as operator.
FAR has said the Senegalese government has not approved Woodside’s acquisition of a 35 per cent stake in SNE from ConocoPhillips in a $350 million deal last year. FAR believes it should have had pre-emption rights, which it could have exercised to buy the stake.
Woodside said: “FAR’s actions have the potential to negatively impact the development schedule and the anticipated timeframe for first oil. The extent of the impact is uncertain at this time.”
A spokesman for Cairn said: “The joint venture has been fully functional while current drilling operations continue in Senegal. The 10th well in three years is operating on the FAN South exploration prospect. We fully understand the need for clarity to take forward this important oil development for the people of Senegal.”
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