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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.