BP Withdraws From Yakaar-Teranga Gas Project in Senegal
British oil and gas company British Petroleum (BP Plc) in early November ceased its participation in the development of the Yakaar-Teranga gas fields on the continental shelf of Senegal. Bloomberg reports this.
Senegal and BP did not agree
The company’s decision to withdraw from the project is motivated by disagreements with the government regarding the use of resources. According to the country’s Minister of Petroleum and Energy, A. Dioma, it sought to export natural gas from the Yakaar-Teranga fields, while the Senegalese authorities planned to use gas to meet domestic demand, primarily to supply power plants. A. Diome said that the government was unable to agree with the major either on daily production capacity, or on a commercial strategy, or on the date of the first gas supply. BP gave up its 60% stake without any financial compensation.
The Yakaar-Teranga project is critical to electrifying Senegal and reducing fuel prices. Senegal wants to accelerate the development of the field and receive the first gas in 2026. The government was not satisfied with BP’s promise to begin supplying fuel by 2028. A. Diome stressed that Senegal cannot wait that long.
Meanwhile, BP’s partner, Kosmos Energy LLC, increased its stake in the project from 30% to 90%, and also took on the role of operator. At the same time, Kosmos Energy, in collaboration with the state-owned company Petrosen and the government of Senegal, is working on an innovative field development concept that provides not only for the supply of gas to the fast-growing domestic market at a competitive price, but also for the construction of a floating LNG plant aimed at export markets.
Yakaar-Teranga’s recoverable reserves are estimated at 25 tcf of gas. The development concept provides for gas production on the shelf in a volume of about 16 million m3/day, its transportation via a gas pipeline to shore for the domestic market and liquefaction of export volumes at a floating LNG plant.
The concept is being optimized to best meet domestic and international requirements before the project enters the front-end engineering design (FEED) stage.
The state-owned company Petrosen plans to eventually obtain a controlling stake in this field.
Senegal is currently looking for a third partner who will receive a 34% stake in the production phase. It is worth noting that BP and Kosmos Energy are also currently implementing the Greater Tortue Ahmeyim (GTA) project offshore Senegal and Mauritania. The launch of the 1st phase of Greater Tortue Ahmeyim is expected in the 1st quarter of 2024.
The project is designed to transport gas both for the domestic markets of Mauritania and Senegal, and for exporting LNG to world markets. On November 20, 2023, the floating LNG plant Gimi FLNG began its journey to the installation site at the GTA project.
