FAR Limited Settles $6M Claim, Eyes Future from Sangomar’s Strong Output
FAR Limited’s December quarter report highlights robust production from the Sangomar field operated by Woodside Energy, alongside a strategic settlement of a $6 million claim with Woodside. The company ends the quarter with a modest cash balance, positioning itself cautiously for the near term.
- Sangomar field achieves 99,000 barrels per day at 99.2% reliability
- FAR settles $6.03 million claim with Woodside, with potential refund clause
- Provisional contingent payment of $11.5 million received for 2024 oil sales
- Quarter-end cash balance stands at $1.9 million
- Minimal quarterly expenditure focused on corporate and administration costs
Strong Production at Sangomar
FAR Limited’s latest quarterly activities report reveals encouraging operational progress through its former interest in the Sangomar oil field offshore Senegal. Operated by Woodside Energy, the field maintained an average daily production rate of 99,000 barrels, with a reliability rate exceeding 99%. This performance underscores the field’s transition from plateau production to steady post-peak output, signalling sustained value for stakeholders tied to this asset.
Settlement of Claim with Woodside
In a significant development, FAR has agreed to settle a $6.03 million claim with Woodside related to the 2021 sale of its interest in the RSSD Project, which includes the Sangomar field. The settlement includes a provision allowing FAR to recover this payment if Woodside successfully recoups the disputed petroleum expenditure from Senegal’s Ministry of Energy, Petroleum and Mines by the end of 2030. This arrangement introduces a layer of financial complexity but also potential upside for FAR.
Financial Position and Contingent Payments
FAR’s cash position at the end of December 2025 stood at $1.9 million, reflecting a cautious but stable financial footing. The company’s expenditure during the quarter was minimal, primarily covering corporate and administrative costs. Notably, FAR received a provisional contingent payment of $11.5 million in May 2025, linked to its previous 13.67% stake in the Sangomar Project. This payment is subject to final reconciliation with joint venture partners and the Senegalese government, which could adjust the final amount.
Looking Ahead
While FAR no longer holds a direct operating interest in Sangomar, its financial exposure through contingent payments and claim settlements keeps it closely connected to the field’s fortunes. The company’s ability to recover funds from Woodside, contingent on government reimbursement, will be a key factor to watch. Meanwhile, the steady production at Sangomar bodes well for the valuation of FAR’s contingent interests and potential future cash flows.
Bottom Line?
FAR’s cautious financial management and strategic claim settlement set the stage for potential upside tied to Sangomar’s ongoing production and government negotiations.
Questions in the middle?
- Will Woodside successfully recover the disputed petroleum expenditure from the Senegalese government?
- How will final reconciliation impact the contingent payment FAR receives for its former Sangomar interest?
- What are FAR’s plans to bolster its cash position beyond minimal corporate spending?
