Gambia Oil: Far is being forced to sell Senegal’s stake in a US$4.6 billion oil drilling project in Gambia.

FAR Oil, the Australian oil giant, has sold its shares in the Sangomar project in Senegal in order to meet its license requirements for future oil wells off the coast of The Gambia.

“FAR has an obligation under its licence in The Gambia to drill the well, which is targeting a potential million-barrel oil discovery, and other licence obligations to be met over the next 12 months,” Cath Norman, the company’s CEO, stated last month that.

According to information analyzed by The Gambia Post, the international firm CEO’s action is viewed as a poor investment by shareholders, prompting Timothy Woodall, one of the company’s directors, to resign in the run-up to the company’s AGM.

As per a piece published in Australia’s Financial Review, Woodall’s resignation was prompted by shareholders voting him off the board in protest of what they consider as “a misallocation of shareholder funds.”

This sale of FAR’s part in Woodside’s US$4.6 billion Sangoma Project in Senegal would allow the business to pay off a loan package intended to help fund the project, which sadly collapsed in March last year because to the impact of the global Covid-19 outbreak on oil prices.

To fund its part of Sangomar, FAR obtained more than $150 million from investors in late 2019 and early 2020.

“The obvious contempt for shareholders’ demands is astonishing,” said Simon Mawhinney, portfolio manager at Allan Gray, a 12 percent shareholder in FAR who has been advocating for the deal monies to be returned to shareholders for the company to be wound up.

“We want our money back,” Mawhinney added.

However, FAR’s Chief Executive Cath Norman stated that Allan Gray was “just one of our shareholders” and that the company has not ruled out returning part of the monies while holding others for a future well off the coast of The Gambia.

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