Senegal’s state-owned oil firm mentioned the Yakaar-Teranga fuel discovery will price $7.5 billion to develop, however will assist the nation slash power subsidies as soon as on stream.
The undertaking may sharply scale back Senegal’s $1 billion-a-year subsidy invoice and in the end assist to switch imported fuels, Mouhamadou Diop, chief govt officer of Petrosen’s buying and selling arm, mentioned at an occasion in Dakar.
The offshore discipline was discovered by Kosmos Vitality Ltd. a decade in the past. The invention, along with the Grand Tortue Ahmeyim fuel deposit, piqued curiosity within the West African nation as a promising new producer. Senegal is eager to make use of the gasoline to generate electrical energy and to construct petrochemical and fertilizer industries.
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BP Plc was an early associate within the Yakaar-Teranga improvement, however exited the undertaking in 2023. Kosmos’ contract expires in July, when Senegal will possible grow to be the only shareholder, echoing related strikes by different African nations to imagine tighter management of their pure assets.
The nation’s plans to develop its personal fuel follows success in constructing a home oil business, with the offshore Sangomar discipline beginning output in 2024.
“We produce oil, however we stay a web importer of refined petroleum merchandise,” Diop mentioned. “The aim is to make use of revenues that you just get from the oil and fuel to truly make investments it in exploration, to be an operator and develop the undertaking ourselves.”
Taking Yakaar-Teranga as two phases, the primary would require about $2.5 billion to provide about 300 million cubic ft of fuel a day for the home market, in accordance with Diop. Round $5 billion can be wanted for a later downstream improvement that may embody fertilizer, petrochemical, metal and cement manufacturing, he mentioned.
Senegal can use a mix of regional bond markets, improvement finance establishments and diaspora-linked capital to pay for the undertaking, the CEO mentioned. “Correctly structured offtake contracts, typically 15 to twenty years, can help undertaking debt of investment-grade high quality.”
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