Senegal looks to nationalize an offshore natural gas project, currently operated by U.S.-based Kosmos Energy, to meet its domestic gas demand, Senegalese Energy Minister Birame Souleye Diop has said.
“It’s a project we have operators for, and we want to nationalise it and give Petrosen, which has the expertise, the opportunity to develop this project to meet domestic gas needs… without ruling out the possibility of exporting,” Reuters quoted Diop as saying at a conference in Senegal.
Dallas-based Kosmos Energy became operator of the Yakaar-Teranga natural gas project in 2023, when BP exited the field. Kosmos Energy has 90% in the Yakaar-Teranga project while Senegal’s national oil company Petrosen owns the remaining 10%.
A spokesperson for Kosmos Energy told Reuters on Wednesday that the company’s license for the Yakaar-Teranga gas field expires in July 2026.
Kosmos has been working to develop the Yakaar-Teranga project, one of the largest gas discoveries in recent years estimated to hold around 25 trillion cubic feet of advantaged gas-in-place. It is working closely with Senegal’s national oil company on a development concept that prioritizes providing cost-competitive gas to the rapidly growing domestic market, combined with an offshore LNG facility targeting exports into international markets, Kosmos says. Development of Yakaar-Teranga is being considered in a phased approach with Phase 1 providing domestic gas and LNG for export. The project has yet to take a final investment decision.
Kosmos Energy, alongside BP, Petrosen, and Mauritania’s national oil company SMH are partners in the nearby Greater Tortue Ahmeyim project that straddles Mauritania and Senegal.
BP, the operator, in April loaded the first LNG cargo for export from Phase 1 of the Greater Tortue Ahmeyim project. Phase 1 at Greater Tortue Ahmeyim (GTA) is set to produce around 2.3 million tons of LNG per year and the project is expected to produce LNG for more than 20 years, BP says.
By Michael Kern for Oilprice.com
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