By Sonali Paul
MELBOURNE, April 1 (Reuters) - FAR Ltd FAR.AX said on Thursday Russia's Lukoil LKOH.MM decided not to go ahead with a A$220 million ($167 million) bid for the Australian company, which owns a coveted stake in an oil project off Senegal.
The move marks Lukoil's second aborted attempt to get into the $4.2 billion Sangomar oil project off Senegal, and clears the way for Australia's Woodside Petroleum WPL.AX , operator of the project, to buy FAR's stake.
"FAR has been advised by Lukoil that the Lukoil proposal is not proceeding to a legally binding offer," the company said in a statement to the Australian stock exchange.
Lukoil made the takeover approach in February, just months after Woodside blocked the Russian company from buying Cairn Energy 's CNE.L stake in the Rufisque, Sangomar and Sangomar Deep Offshore joint venture by matching its $400 million offer. similarly blocked India's ONGC Videsh Ltd ONVI.NS from buying FAR's stake in the joint venture, matching its offer of $45 million.
With those deals, Woodside will increase its holding in the project to 90%, pending FAR shareholders' approval at a meeting on April 15.
Woodside has said it aims to sell down its stake in the joint venture so it will not be saddled with the full cost of the project, which is due to start producing in 2023.
FAR's shares have been suspended from trading since September due to uncertainty over the sale and valuation of its Senegal stake.
($1 = 1.3168 Australian dollars)