18/07/2006
Senegal stands on the precipice of a significant energy transformation, with its offshore oil and gas fields poised to reshape its economic landscape. The nation's strategic focus is firmly set on developing its substantial deepwater discoveries, aiming for production to commence imminently. At the forefront of this energy revolution are two key projects: the Sangomar field, being developed by Australia's Woodside Energy, and the Greater Tortue Ahmeyim (GTA) project, a collaboration between BP and Kosmos Energy.
These ventures are not merely about extracting resources; they represent a deliberate strategy to foster economic growth, enhance energy security, and industrialise the nation. By harnessing its newly discovered hydrocarbon wealth, Senegal aims to reduce electricity costs, cultivate local content, and build a more connected and competitive economy. The potential is immense, with estimates suggesting reserves of over 1 billion barrels of oil and 40 trillion cubic feet of gas, much of which is shared with neighbouring Mauritania.
The timeline for these ambitious projects is ambitious, with Senegal expecting all its offshore developments to come online between 2022 and 2026. This period marks Senegal's transition from a nation with modest oil and gas output to a projected hot spot for relatively low-cost Liquefied Natural Gas (LNG) clusters over the next decade.
Sangomar: A Deepwater Oil Frontier
The Sangomar Deepwater Oil Field, situated in the Rufisque, Sangomar, and Sangomar Deep Blocks, is a testament to Senegal's deepwater potential. Covering an impressive 7,490km² within the Senegalese portion of the MSGBC Basin, it ranks among the world's largest oilfields discovered in the last decade. The development is a joint venture, with Cairn Energy holding a 40% stake, Woodside Energy 35% (and acting as operator), FAR 15%, and Petrosen 10%.
The journey to this stage began in 2014 when Cairn Energy drilled the first deepwater wells offshore Senegal, making two basin-opening discoveries, including the SNE field, which was the largest global oil discovery of that year. This success has transformed the region from a frontier basin into an emerging oil play, attracting significant international industry attention.
Key milestones have been achieved in the Sangomar development. Woodside has assumed the operator role, and the Joint Venture (JV) is targeting a Final Investment Decision (FID) in the latter half of 2019, with first oil anticipated in 2022. The development strategy centres on a stand-alone Floating Production Storage and Offloading (FPSO) vessel facility, designed to handle approximately 100,000 barrels of oil per day (bopd). The project will incorporate 23 subsea wells and supporting subsea infrastructure. Crucially, the design allows for subsequent development phases, including options for gas export to shore and future subsea tiebacks from other reservoirs and fields.
Early this year, the project received approval in principle for its technical basis. Furthermore, confirmation of an extension to the licence covering the development area was secured, providing the necessary time to conclude Front-End Engineering Design (FEED) and mature financing activities prior to the award of the Exploitation Licence.
Eric Hathon, exploration director at Cairn Energy, highlighted the evolution of the region: "The region has now evolved from a frontier to an emerging hydrocarbon opportunity attracting the attention of the global industry." He further emphasised the commitment to delivering tangible benefits: "We are committed to delivering lasting and social economic benefits in Senegal, including, energy security and revenues, employment, development of an infrastructure and social investment. Cairn’s belief is that the discovery and development of sustainable oil production will greatly benefit the national economy and local population."
Greater Tortue Ahmeyim (GTA): A Gas Giant Emerges
The Greater Tortue Ahmeyim (GTA) project, a significant collaboration between BP and Kosmos Energy, is another cornerstone of Senegal's energy ambitions. BP took the crucial Final Investment Decision (FID) on the Mauritania-Senegal Floating Liquefied Natural Gas (FLNG) plan late last year. This project is set to produce approximately 2.5 million tonnes per year of LNG, with the highly anticipated first gas expected in 2022.
The GTA project is a joint development spanning the maritime border of Senegal and Mauritania. It aims to unlock vast offshore gas reserves, positioning the region as a key player in the global LNG market. The development plan includes the construction of an FLNG vessel, which will process the natural gas extracted from the subsea wells before liquefying it for export.
Expansion plans are already in motion, with hubs earmarked for Yakaar-Teranga and Birallah. The Orca well, scheduled to be spudded in October, will support the Birallah hub. The initial phase of the Birallah development is intended to provide domestic gas and crucial data for producers to optimise future development phases.
Kosmos Energy, a key partner in the Yakaar-Teranga project, has reported significant success in its appraisal efforts. The Yakaar-2 appraisal well encountered approximately 30 meters of net gas within a high-quality Cenomanian reservoir, mirroring the success of the Yakaar-1 exploration well. This continues the impressive 100 percent success rate for wells targeting the inboard Mauritania/Senegal gas trend.
According to Kosmos, these results confirm that the Yakaar-Teranga resource base is of world-scale magnitude. The project holds the potential to support an LNG project that can supply substantial volumes of natural gas to both domestic and international markets. The development of Yakaar-Teranga is planned in phases, with the first phase prioritising domestic gas supply and data collection to refine the development of subsequent phases.
This domestic gas supply is intended to bolster Senegal's "Plan Emergent Senegal," a national development initiative launched by the President in 2014. Kosmos Energy has indicated its intention to divest a portion of its stake in the project, seeking a carry for its development costs to allow the company to concentrate on its core expertise in exploration.
Senegal's Strategic Vision: Beyond Production
Senegal's focus on oil and gas is deeply intertwined with its broader national development objectives. The nation seeks to leverage these resources to build a robust and competitive economy. Key pillars of this strategy include:
- Reduced Electricity Costs: Access to domestic gas can significantly lower the cost of power generation, making electricity more affordable for businesses and households.
- Local Content Development: The projects are designed to maximise the involvement of Senegalese companies and workforce, fostering skills development and creating employment opportunities.
- Industrialisation: A stable and affordable energy supply is a critical enabler for industrial growth and diversification.
- Energy Security: Developing domestic resources reduces reliance on imported energy, enhancing national energy security.
The government's commitment is evident in the early-stage development plans and the collaborative efforts with international energy companies. While the world's attention has often been focused on LNG plays in other parts of Africa, Senegal is steadily positioning itself as a significant emerging player in the global energy market.
Comparing Offshore Project Developments
To better understand the scale and complexity of Senegal's offshore ventures, let's consider a comparative overview:
| Project | Operator | Key Partners | Primary Resource | Estimated Production (LNG) | Expected First Production | Development Type |
|---|---|---|---|---|---|---|
| Sangomar | Woodside Energy | Cairn Energy, FAR, Petrosen | Oil | N/A (Oil focused) | 2022 | FPSO |
| Greater Tortue Ahmeyim (GTA) | BP | Kosmos Energy, Petrosen, SMH | Gas | ~2.5 Million Tonnes Per Year | 2022 | FLNG |
| Yakaar-Teranga | Kosmos Energy (Operator intent) | BP, Petrosen | Gas | Phased, domestic focus initially | Post-2022 (Phased) | Onshore Processing/FLNG potential |
| Birallah | Kosmos Energy (Supporting) | BP, Petrosen | Gas | Domestic focus initially | Post-2022 (Phased) | Subsea Infrastructure |
Frequently Asked Questions
When will Senegal's oil and gas projects start production?
Senegal expects all its offshore projects to come online between 2022 and 2026. Specific projects like GTA and Sangomar were targeting first production in 2022, with phased developments for others continuing beyond.
What are the main offshore projects in Senegal?
The two largest and most significant offshore projects currently under development are the Sangomar field (operated by Woodside Energy) and the Greater Tortue Ahmeyim (GTA) project (operated by BP). Other fields like Yakaar-Teranga and Birallah are also part of Senegal's expanding energy portfolio.
What is the significance of the Greater Tortue Ahmeyim (GTA) project?
The GTA project is a major cross-border gas development between Senegal and Mauritania. It is expected to produce significant volumes of LNG, positioning the region as a key supplier in the global market and providing substantial domestic gas resources.
What is the role of Woodside Energy in Senegal?
Woodside Energy is the operator of the Sangomar Deepwater Oil Field. They are responsible for the development and eventual production of oil from this significant discovery, utilising a Floating Production Storage and Offloading (FPSO) vessel.
How will these projects benefit Senegal's economy?
Senegal aims to utilise the revenue and resources from these projects to reduce electricity costs, foster local content development through job creation and business opportunities, drive industrialisation, and enhance overall energy security and economic competitiveness.
The concerted effort to bring these offshore resources online signifies a pivotal moment for Senegal. The nation is not just aiming to become an oil and gas producer but is strategically leveraging this potential to fuel a more prosperous and self-sufficient future. The progress made on the Sangomar and GTA projects, coupled with the successful exploration in areas like Yakaar-Teranga, underscores Senegal's commitment and capability in navigating the complexities of the modern energy sector.
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