FAR (ASX:FAR) has received a $6 million demand from Woodside Energy (Senegal) BV, the operator of the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture, where Woodside Energy Group (ASX:WDS) has an 82% participating interest, according to a Wednesday filing with the Australian bourse.
The claim relates to FAR's 2021 sale of its interest in the project to Woodside, under which the company may be required to indemnify Woodside for unrecovered petroleum costs.
Woodside said the Senegal Ministry of Energy, Petroleum and Mines made a final ruling that certain petroleum expenditures were not recoverable, prompting the demand for payment within 14 days, the filing added.
FAR said it has not accepted liability and continues to reserve its rights under the agreement.
Shares of the company inched up 2%, while shares of Woodside rose 3% in recent Wednesday trade.
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