Senegal achieves first oil from Sangomar Project
The African Energy Chamber [AEC] – the voice of the African energy sector and a strong advocate for oil and gas development in Africa has applauded the project partners for reaching this historic milestone. First oil production is poised to drive new opportunities for economic growth in the country and affirms the critical role oil and gas plays in Africa.
Phase one of the Sangomar field development stands as a testament to Senegal’s commitment to advancing its energy sector. The deepwater project represents a significant leap forward in technological innovation and project execution. At the heart of this endeavor lies the Léopold Sédar Senghor FPSO, stationed 100 km offshore Senegal. With a production capacity of 100,000 barrels per day and storage facilities capable of accommodating 1.3 million barrels, the FPSO vessel exemplifies Senegal’s capability to undertake and manage extensive energy endeavors on a significant scale.
The ambitious scope of phase one – comprising 23 wells with ongoing drilling activities – underscores Senegal’s determination to harness its natural resources for the benefit of its people. With a project cost of between $4.9 billion and $5.2 billion, Sangomar showcases the country’s ability to execute complex projects on schedule and within budget, further enhancing its reputation as an attractive investment destination.
“Credit must be given to Woodside CEO Meg O’Neill, Petrosen and the Woodside team for their gusto, resilience and commitment to delivering this project. The relentless drive in meeting their commitment to Senegal is impressive. In Woodside, Senegal would see a world class operator that is going to produce energy in a sustainable way and also champion local communities through robust local content and community outreach programs,” states NJ Ayuk Executive Chairman of the AEC.
The achievement of first oil from the Sangomar field represents a milestone not only for Senegal but for the entire MSGBC region. The project brings online a new energy source at a time when energy demand is projected to increase rapidly across the region and is poised to significantly reduce the reliance on imported petroleum. The project also underscores the potential for large-scale investments offshore Senegal, laying the foundation for new developments to kick off.
“Exploration is back on track as the MSGBC Basin now marries a great geological resource with a very strong balance sheet and it becomes more attractive. There is so much more oil and gas to be found in Senegal. Woodside’s success in the MSGBC Basin will see a new scramble for exploration that will boost oil production and keep prices low for citizens around the region,” adds Ayuk.
The next project on the horizon is the Greater Tortue Ahmeyim [GTA] development, which anticipated first production by Q3/Q4 this year. The arrival of the FPSO vessel this month – which will process over 500 million standard cubic feet of gas per day – signifies a significant milestone for the project, enabling Senegal to utilize its abundant gas resources for domestic consumption and export. The development of the GTA project, along with plans for a gas-to-power plant near Saint-Louis, highlights Senegal’s strategic approach to energy infrastructure development, cultivating socio-economic growth and improving energy access for its citizens.
As Senegal transitions into an oil and gas-producing nation by late 2024, the role of hydrocarbons in the MSGBC landscape becomes increasingly pivotal. Oil and gas will continue to play a significant role in both the region and continent’s energy mix, serving as a crucial source of revenue and catalyst for a just energy transition.
“We believe the revenues from oil would empower Senegal’s government and citizens to develop their country. Senegal’s future is bright, but we can only secure that future by strengthening legislation, maintaining the sanctity of contracts, promoting an enabling environment, supporting local content, emphasizing education, following a balanced development paradigm, and utilizing the best skills in the oil and gas industry through partnerships. I am confident that both the government and Woodside will continue this strong working relationship and partnership to make Senegal the regional hub for energy,” Ayuk concluded.
First production comes ahead of the African Energy Week [AEW]: Invest in African Energy conference – scheduled for November 4-8 in Cape Town. During the event, a dedicated Invest in MSGBC Energies country spotlight will showcase the region’s potential as an investment destination and a hub for energy innovation and development.
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