Senegal has officially entered the ranks of oil-producing countries. Australian company Woodside Energy announced Tuesday the commencement of oil extraction from the Sangomar field off the African coast.
“Woodside has successfully extracted the first oil from the Sangomar field, marking the completion of the country’s first offshore oil project,” the company stated in a press release.
Woodside operates the field in partnership with the Société des Pétroles du Sénégal (Petrosen).
Sangomar and Grand Tortue/Ahmeyim: Promising Projects
The deepwater Sangomar field, located approximately 100 km south of Dakar, contains both oil and gas, with a targeted production of 100,000 barrels per day.
This initial extraction precedes the anticipated production from another significant project, Grand Tortue/Ahmeyim (GTA), on the border with Mauritania.
Developed by BP, Kosmos Energy, SMH, and Petrosen, GTA is expected to produce around 2.5 million tons of liquefied natural gas annually, with production potentially starting in the third quarter.
Economic Transformation and Export Potential
Senegal’s oil and gas production will primarily serve export markets and domestic consumption. While not reaching the levels of global and African giants like Nigeria, it is projected to generate billions of dollars in revenue, accelerating the country’s economic transformation.
“The start of extraction from the Sangomar field marks the beginning of a new era, not only for our country’s industry and economy but, above all, for our people,” said Thierno Ly, General Manager of Petrosen Exploration and Production, in Woodside’s press release.
Historic Milestone and Future Prospects
Meg O’Neill, Woodside’s CEO, described this as a “historic day for Senegal and for Woodside.” The discovery of vast oil and gas reserves in the Atlantic since 2014 has raised considerable hopes in this developing nation. Petrosen estimates annual revenues exceeding one billion euros over a thirty-year period.
While the discovery has brought optimism, concerns about the “resource curse” and potential corruption have also arisen. Senegal remains steadfast in its commitment to responsibly harnessing its resources for the benefit of its people.
Political Landscape and Contractual Reviews
The upcoming gas and oil production, delayed multiple times, was a central issue in the recent presidential campaign. The newly elected president, Bassirou Diomaye Faye, has pledged to review or renegotiate existing oil, gas, mining, and fishing agreements deemed unfavorable to Senegal. An audit of the mining, gas, and oil sectors is underway.
Senegal’s entry into the realm of oil-producing nations marks a pivotal moment in its history. The nation’s commitment to responsible resource management, coupled with its focus on economic development, positions it for a promising future in the global energy landscape.
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