LUKOIL won’t be able to expand its presence offshore West Africa. The company planned to acquire 40% in the field in Senegal Sangomar offshore, but the project operator Woodside Australian took advantage of the priority right of redemption of shares. The transaction amount can not be less than $300 million LUKOIL will not be able to acquire 40% in the project of rufisque, Sangomar and Sangomar Deep (RSSD) on the continental shelf of Senegal from the British Cairn Energy PLC. As the message of the Cairn, after LUKOIL signed an agreement to buy a stake in the project, the project operator Woodside Australian (which owns 35% in the RSSD) decided to take pre-emptive right of redemption on the same terms that was offered to the Russian oil company. So, the sum of transaction will make $300 million, up to $100 million to Cairn Energy PLC can obtain a bonus after the start of production.The deal can be closed in the fourth quarter of 2020.Blocks with a total area of 2.2 thousand sq km located in the deep offshore of Senegal, 80 km from the coast. The RSSD project is implemented on the terms of the agreement on production section. Within the project there are two fields: FAN and Sangomar, recoverable reserves latest LUKOIL is estimated at 500 million barrels of oil equivalent. Start Sangomar with the design production level of 5 million tons of oil per year and is scheduled for 2023.LUKOIL and Cairn has agreed a deal in late July. The Head of LUKOIL Vagit Alekperov has explained that the purchase of shares in the project with a proven resource base at an early stage of development is fully consistent with the company’s strategy and allows it to strengthen its presence in West Africa, and to get more experience in the region.Because of the complexity with the expansion of the resource base in Russia, the company is actively buying shares in offshore international projects at an advanced stage of production to minimize risks. Recently, LUKOIL has acquired a 25% in the project Marine XII in Congo for $768 million, and 5% in concessions Ghasha in the UAE, and at the end of November 2019 increased from 18% to 40% of its stake in exploration block 132 in Nigeria. Also, the Russian company is discussing with the state GEPetrol entry into the project development unit EG-27 on the shelf of Equatorial Guinea with a share of 80% (20% from GEPetrol). In addition, at the beginning of 2021 can be investment decision on the project “Etinde” offshore Cameroon, where LUKOIL owns 37.5%. By the end of this year the company expects approval from the government of Ghana for the project development on block Tano offshore fields Pecan.Dmitry Kozlov