Cairn has entered into a farm down agreement with ConocoPhillips for three contiguous blocks located offshore Senegal, West Africa.
Under the terms of the agreement, which is subject to Government of Senegal approval, ConocoPhillips will acquire a 25% working interest from Cairn in the three contiguous blocks – Rufisque, Sangomar and Sangomar Deep, where a 2,050 sq km 3D seismic survey has been used to identify prospects.
The exploration campaign is targeting a block-wide potential of more than 1.5 billion barrels of yet-to-find resource, with a proposed two-well programme with drilling expected to start in the first half of 2014. Cairn has already contracted the Cajun Express rig for the work.
Cairn will retain operatorship and 40% interest in the blocks during the exploration phase. Petrosen, the Senegal National Oil Company, will retain a 10% interest in the exploration phase. In the event of a commercial find ConocoPhillips would have the option to operate the future development.
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