June 24 (Reuters) – Australian listed oil and gas company FAR Ltd said on Wednesday its unit had defaulted on its obligations to the Sangomar joint venture project in Senegal while the company looks to save cash and sell its interest in the project.
Sangomar, operated by Australia’s Woodside Petroleum , has been a pain-point for FAR in recent months after the company failed to secure debt to fund it, following a plunge in global oil prices amid the coronavirus pandemic.
FAR said it was still considering selling all or part of its interest in the project, adding that it would forfeit its interest without compensation if obligations were not fulfilled within six months.
The announcement comes just a day after Woodside said it expects production at Sangomar to begin in 2023.
FAR said it had implemented further cost saving measures, including job cuts, and that senior executives and non-executive directors would take a 20% pay cut. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Lincoln Feast.)
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