Australia

FAR Ltd signs crude oil offtake deal with Glencore; awards development drilling contract

FAR Ltd (ASX:FAR) has signed a binding memorandum of understanding (MoU) with Glencore Energy (UK) Ltd for the full allocation of FARs share of crude oil from the Sangomar Field offshore Senegal.

Glencore Energy (UK) is a subsidiary of Glencore PLC (LON:GLEN), one of the worlds largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.

The binding MoU between FAR and Glencore, which is subject to the negotiation of final documentations, provides FAR with access to the extensive marketing and offtake resources of one of the worlds leading marketers of crude oil.

FAR will benefit from Glencores global network and multi-decades expertise in the oil and gas landscape, including access to Glencores track record in successfully creating markets for new qualities of crudes, thereby maximising the intrinsic value of the Sangomar barrels.

The offtake is expected to be for a period of seven years following first oil with a minimum of 20 million barrels (representing FARs share of the project) expected to be produced during that time.

Development activities commence

FAR, along with its partners in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture, last week signed the FID (final investment decision) statement for the Sangomar Field development.

Following the signing, the full notice to proceed (FNTP) has been issued to the key contractors for commencement of the development.

Orders have been placed for long lead items for the drilling and related completions, with drilling planned to commencRead More – Source