African Energy Week (AEW) 2024: Petrosen Targets Final Investment Decision (FID) for Yakaar-Teranga in 2025, Seeks Third-Party Partner

 

The Yakaar-Teranga project – situated offshore Senegal – is expected to make a Final Investment Decision (FID) in 2025, with production starting between 2028 and 2029, said Petrosen Director General Thierno Ly.  

Speaking at a Technip Energies-sponsored Invest in MSGBC Energies panel discussion at African Energy Week: Invest in African Energies, Ly explained that the project focuses on producing gas for the domestic market.  

“We are working with our partner Kosmos Energy [on the project]. We are in the final stages of the project and are looking for a partner to join us to bring added value to this project. By end of year, we anticipate a third-party to join us,” Ly stated.  

The Yakaar-Teranga project is just one of many underway across the region. Senegal achieved a milestone in 2024 with the start of production at the Sangomar oilfield development. Serving as the country’s first offshore oil project, the $5.2 billion project has a capacity of 100,000 barrels per day. Senegal also has 16 offshore blocks available for tender and expects the first phase of the Greater Tortue Ahmeyim (GTA) LNG development to start operations shortly.  

“Sangomar was a major milestone for the country,” said Papa Samba Ba, Director of Hydrocarbons, Ministry of Petroleum and Energies, Senegal. “This project means that we can supply affordable, accessible and sustainable energy to its population. This is a top priority and vision of the government.”  

For Mauritania, GTA represents just the start of its energy ambitions. The country is also home to the 13 trillion cubic feet (tcf) BirAllah development, is offering 15 offshore blocks for exploration in 2024 and is promoting investment in renewable energy and mining.   

“Building on three elements – namely, gas, mining and renewables – we have set up an integrated energy vision that aims to position the country as a major exporter. Our vision it to have universal access to electricity by 2030 and we need all these energies to do this,” said Moustapha Bechir, Senior Advisor: Upstream, Mauritania’s Ministry of Petroleum&Energy.  

Beyond Senegal and Mauritania, neighboring countries in the MSGBC region are promoting offshore block opportunities. Guinea-Conakry, for example, is currently finalizing the terms of a 22-block bid round, which is expected to bring new players to the market. The country – strategically located in the heart of the MSGBC region – aims to integrate not only its only energy industry with other sectors such as mining, but those of regional neighbors. 

“We are busy exploring and one of the critical things we want to highlight is that this is the moment to invest in the petroleum sector in Guinea. Our geological position within the MSGBC basin is optimal. This allows you to connect your investments with other countries in the region,” said Lanciné Conde, Director General of Guinea Conakry’s NOC Société Nationale des Pétroles.  

The Gambia also has potential for major discoveries offshore. The country’s Blocks A2 and A5 lie in proximity to the 230-million-barrel Sangomar field in Senegal. According to Lamin Camara, Permanent Secretary, Government of The Gambia, “We have seen developments taking place in Mauritania and Senegal and continue to accelerate our exploration. We have changed our strategy, and are now in direct negotiations with players to explore resources.” 

Major operators such as Golar LNG, AGL Group and Technip Energies continue to drive projects forward across the region. Golar LNG, for example, aims to utilize its innovative FLNG technology to unlock additional commercial reserves.  

“FLNG is scalable and enables access to export markets. There is a commercial flexibility that it holds. There is a technology available to the basin which fits both large-scale projects and smaller start-ups. Those two aspects married together, will increase the likelihood of a commercial discovery,” said Anthony Barker, EVP-Commercial, Golar LNG.  

For Technip Energies, the region stands to benefit from diversified project solutions. Dominique Gadelle, Vice-President Early Engagement, Gas&Low Carbon Energies Business Line, Technip Energies, explained that “There is no single solution when we look at the MSGBC region. We see projects with massive reserves and some with smaller reserves, and these might not have the same development model. There is a fit-for-purpose solution for all these developments.”  

AGL Group sees an opportunity for local companies to enhance their role in the emerging MSGBC oil and gas industry. According to Sidi Ahmed Abeidna, CEO, SOGECO SA, AGL Group, stated that “We play the role to drive local content, supporting local companies integrate their services and bring their expertise to international standards. AGL is investing around EUR 500 million in 45 countries across various projects.”  

Distributed by APO Group on behalf of African Energy Chamber.