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a gas liquefaction plant. The first phase of the plant is supposed to begin operating in the first half of 2022. It will turn out 2.5mn tonnes per year of LNG, and production capacity may even- tually reach 10mn tpy.
The group appears to be eyeing a similar plan for Yaakar-Terenga, with an eye towards launch- ing development around 2023. Kosmos said that the field was large enough to support two stages of development, with gas from the first phase going to domestic buyers in Senegal and gas from the second phase feeding another LNG plant that will target export markets.
Investment in these activities will benefit Senegal by expanding the gas sector, which will be in a position to create jobs and lend support to related industries such as construction. But it will also bolster wider efforts to develop the economy by making gas available for power generation, industrial use and residential con- sumption, as envisioned in Plan Senegal Emer- gent (PSE), a government initiative unveiled in 2014. The plan is designed to catapult the coun- try into the middle-income group of countries by 2035.
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In the near term, the BP-led group’s latest dis- covery – and its importance within the PSE framework – is likely to spur greater interest in Senegal’s next bidding round.
Earlier this year, Sall told Guillaume Doane, the CEO of Africa Oil & Power (AOP), that his government intended to auction off a set of offshore blocks in October. During a meet- ing with Doane in July, he said that Petrosen would launch the bidding contest at AOP’s next annual conference, which will take place
in Cape Town on October 9-11.
Petrosen has not revealed many details about
the blocks it intends to offer in the upcoming auctions. But there is a good chance that the bidding contests will draw strong interest from international oil companies (IOCs). Firms with deepwater experience are likely to be keen on the opportunity to extract gas from fields in the inboard Mauritania/Senegal trend, espe- cially if BP and its partners are willing to grant other operators access to their liquefaction and transport facilities. Meanwhile, other potential investors may hope to emulate the example of Australia’s Woodside Energy, which has found crude oil in its offshore blocks, known as FAN and SNE.
In any event, Petrosen’s managing director, Mamadou Faye, has said he is optimistic about the upcoming bidding contest. In late July, he commented: “With several world-class oil and gas discoveries, Senegal has built an excellent reputation globally in the energy industry. Through a new licensing round and investment drive, we are eager to capitalise on Senegal’s strong track record to attract new operators and exploration.”
Doane also struck an upbeat note in July, saying: “With discovery after discovery, Senegal has distinguished itself as one of Africa’s leading exploration frontiers. Another licensing round is certain to draw interest from a wide variety of operators. Thanks to the leadership of Presi- dent Macky Sall, Senegal is a prime example of a country making energy work – creating an ena- bling environment for business to succeed [and] attracting huge international investments, while providing capacity for local power generation, industry and downstream development.”™
These discoveries have the potential to spur significant economic growth in Senegal over the long term.
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