Russian bombshell for Woodside in Senegal

Woodside Petroleum is "considering all its options" after the shock news of a deal that would see Russian oil heavyweight Lukoil – the subject of US sanctions – join as a major partner in its troubled $US4.2 billion ($5.8 billion) oil project in Senegal.

The $US400 million deal for Cairn Energy to sell its entire 40 per cent stake in the Sangomar oil project to Lukoil adds to the upheaval taking place in the project, where cash-strapped junior partner FAR Ltd has all or part of its stake up for sale after its funding for the costly project fell through on the oil price crash.