Australian energy giant Woodside has received a decision in its favor from the International Court of Arbitration of the International Chamber of Commerce regarding a dispute related to ConocoPhillips’ sale of interest in acreage off Senegal to Woodside.
Namely, FAR Limited made a request in June of 2017 to the International Chamber of Commerce to start arbitration proceedings to resolve the company’s dispute with Woodside regarding FAR’s right to pre-empt the sale of ConocoPhillips’ interest in the Rufisque, Sangomar, and Sangomar Deep joint venture offshore Senegal.
According to FAR, a valid pre-emptive rights notice was not issued to the JV partners by ConocoPhillips and FAR invoked its right to resolve this dispute in accordance with the joint operating agreement. It is worth noting that FAR was thinking of arbitration against ConocoPhillips since the spring of 2017.
Woodside said on Friday that it received a decision in the arbitration initiated by FAR against Woodside’s Senegal entity, which was heard in July 2019.
The court found in favor of Woodside and declared that FAR did not have pre-emption right over Woodside’s 2016 transaction to enter the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture.
According to the Australian company, the tribunal also rejected FAR Limited’s other claims.
The Tribunal ordered the parties to provide their views on the next procedural steps arising from the decision within 45 days.
Woodside added that it was committed to working with the RSSD joint venture to progress the Sangomar Field Development, which achieved final investment decision in January 2020.
Regarding the development, it is worth adding that FAR received final credit approvals for an underwritten $300 million senior secured reserve-based lending facility for the Sangomar field development.
In a separate announcement on the same day, FAR said it was analyzing the latest development in the case and was evaluating its position at the moment.