Top 5 Developments in Senegalese O&G in 2023
Senegal’s economic growth is expected to remain strong during the period 2023-2027 owing largely to progress seen across the country’s oil and gas sector.
In June 2023, several hydrocarbon projects have reached new milestones, setting the country up for a wave of development on the back of job creation, energy security, revenue generation and broader economic opportunities.
GTA Phase 1 Hits 90% Completion
The Greater Tortue Ahmeyim (GTA) development – situated on the maritime border of Senegal and Mauritania – offers recoverable gas resources of between 15 and 20 trillion cubic feet (tcf). To date, the developments Phase 1 is 90% (June 2023) complete and on track for first gas production by Q4 2023.
The first phase will see 2.5 million tons per annum (mtpa) of liquefied natural gas (LNG) brought onto the market, most of which will be exported following a sale and purchase agreement inked in 2020 with energy major bp. 70 million standard cubic feet of gas per day (mmscfd) will be utilized for both Senegal and Mauritania’s local markets.
GTA Phase 2, Yakaar-Teranga Phase 1 Make Progress
Phase 2 of the GTA development doubles production capacity, with output increasing from between 2.5 and 3 mtpa. Start of production during this phase is targeted for 2027-2028, with the joint venture partners – bp (operator with 56%), Kosmos Energy (27%), Petrosen (10%) and Société Mauritanienne Des Hydrocarbures (7%) – having recently selected the concept for the next phase of the project.
Sangomar Project Hits 85% Completion
The Sangomar oil project, mirroring the significance of the GTA, has achieved a major milestone by reaching 85% completion. This progress brings with it substantial recoverable resources, including 650 million barrels of oil and 2.4 trillion cubic feet of gas. Start of production is on track for Q4 2023, with between 75,000 and 125,000 barrel per day expected to be produced. Joint venture partners include Woodside (82%) as the operator and Petrosen (18%). Petrosen additionally shared that the field’s associated gas – ranging between 60 to 90 mmscfd – will be developed in a specific phase during the period 2025-2026.
Projects Progress Under Gas Master Plan
Senegal is making headway with its second large-scale gas project, the Yakaar-Teranga development offering recoverable resources of between 15 and 20 tcf. Currently, conceptual studies are underway for the development of the project through an onshore plant with capital expenditure for Phase 1 estimated at between $2 billion to $3 billion. A final investment decision (FID) is being targeted for Q1 2024, with 150 mmsfcd intended for local power generation. Joint venture partners include bp (60%), Kosmos Energy (30%) and Petrosen (currently 10% with the possibility to increase up to 20% following FID).
To date, planned projects under the Gas Master Plan – a framework for the monetization of gas and development of associated industry – are also making headway. Currently in the feasibility stage is a Liquefied Petroleum Gas storage facility while in preliminary stages include a virtual natural gas pipeline; CNG and LNG fueling stations and a fertilizer plant. Additionally, a gas-to-power facility is under FEED studies while an ammonia/urea plant is under a conceptual study.
Petrosen Opens Investment Opportunities
Focused on attracting new investment into the market following first oil and gas production, Petrosen shared at the Invest in African Energy Forum in Paris that the country offers a variety of investment opportunities for regional and global players. These include exploration blocks on offer (16 offshore and 6 onshore); the refinancing of the NOC interest share in de-risked projects including the GTA Phase 1 (~$480 million) and Sangomar Phase 1 (~ $450 million) and financing opportunities for oil and gas projects under study including the GTA Phase 2 (~$500 million) and Yakaar-Teranga (~$400-$600 million).
Additionally, a gas-to-power pipeline calls for $100 million for Phase 1 of a gas pipeline network and $400 million overall while several downstream projects are looking for capital including Phase 2 of a refinery upgrade ($500 million); a virtual natural gas pipeline ($250 million); CNG and LNG fueling stations ($17 million); LPG storage facilities ($48 million); and a fertilizer plant ($1,455 million).
Published: 13-06-2023
