Guinea Bissau Withdrawal
FAR announced on 15 March 2022 that it has commenced steps to withdraw from its 21.43% interests in the Esperanca Blocks 4A & 5A and Sinapa Block 2 offshore Guinea-Bissau. FAR has provided its notices of withdrawal to the Government of Guinea-Bissau and Operator of the joint venture, PetroNor E&P AS (PetroNor), in accordance with the relevant agreements. Joint efforts by FAR and PetroNor to collaboratively farm-down have been unsuccessful.
FAR has already met the minimum financial commitments associated with the license, and there are no 2022 commitments in place, therefore FAR does not expect to incur any new material expenses related to these interests.
FAR has impaired US$2.7 million of capitalised costs associated with the Guinea-Bissau project in the 2021 year.
FAR has previously disclosed a contingent liability of up to US$13 million payable in the event of production, and a contingent withholding tax liability of US$568k in the event of development, relating to the Guinea-Bissau interests (see Note 22 to the Financial Statements for the year ended 31 December 2021). In the event of withdrawal FAR will not participate in any future development and production relating to these interests therefore the contingent liabilities will no longer exist.
More information
For further information on FAR’s Guinea-Bissau licences, please visit the Announcements & Reports section of the Company website and refer to the most recent announcement on 15 March 2022.