Australian oil and gas company FAR has executed the sale agreement with Woodside for its interest in the Senegal RSSD Project to Australia's Woodside.

FAR had agreed to sell its Senegal interests, containing the Sangomar development, to India's ONGC Videsh in November 2020. However, Woodside as FAR's partner in the project exercised its first-buy rights to acquire FAR's interest.

FAR has a 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area.

The terms of Woodside’s acquisition will reflect those of the FAR/ONGC Transaction, including payment to FAR of US$45 million, reimbursement of FAR’s share of working capital, including any cash calls, from January 1, 2020, to completion, and entitlement to certain contingent payments capped at US$55 million.

"On January 19, 2021, the FAR group executed a Sale and Purchase Agreement with Woodside in relation to the sale," FAR said Wednesday.

FAR shareholders are due to consider authorizing the agreement with Woodside at a shareholders’ meeting to be held on February 18, 2021.

Worth noting, FAR in December 2020 said it had received a A$209.6 million ($159.15 mln) all-cash takeover proposal from private investment firm Remus Horizons PCC Ltd.

In a statement on Wednesday, FAR said it would provide shareholders with further information in advance of the February 18 meeting to enable them to consider the Woodside sale in the context of the Remus proposal, "...should Remus provide [FAR] with a binding proposal prior to the shareholder’s meeting."

"At this time the Remus proposal is non-binding and conditional on the Woodside sale not occurring," FAR said.