Oil explorer FAR Limited has agreed to sell its entire stake in its Senegal offshore blocks, which contain the country's maiden oil project -- Sangomar -- to India's ONGC, it said Nov. 11.

FAR's Managing Director Cath Norman admitted that the sale of the Rufisque, Sangomar and Sangomar blocks offshore Senegal is "a bittersweet moment" but that it remained committed to projects in The Gambia and Guinea-Bissau.

ONGC Videsh, the overseas arm of India's ONGC, confirmed in a statement that it had agreed to pay FAR S$45 million for a 13.67% interest in the Sangomar field and a 15% stake in the remaining contract area of the Rufisque, Sangomar Offshore and Sangomar block, along with some more reimbursements.

"The market for financing and selling assets has been weak since the impact of COVID-19 was felt in March of this year," Norman said. "In these circumstances, the offer from ONGC represents the best option available at this time and we trust that our shareholders will vote for this transaction."

A final investment decision on the first phase of Sangomar, targeting 230 million barrels, was taken in January, with first oil expected in 2023.

The field is expected to produce 100,000 b/d at its peak in phase 1. Total recoverable oil resources are estimated at 500 million barrels, with a gas pipeline to shore also envisaged.