Cash-strapped FAR Ltd has struck a "fire sale" deal to sell its prized stake in Woodside's Sangomar oil project to India's ONGC Videsh – at a price that may be cheap enough to tempt Woodside to again step in and pre-empt the purchase.

The cut-price deal will haul the junior explorer out of default on its overdue payments for the $US4.2 billion ($5.7 billion) oil project being built off the coast of Senegal.