Following major oil and gas fields discovered in Senegal and Mauritania (BP, Cairn, Woodside, Kosmos, CNOOC...), we believe that there will be many opportunities for the Scottish supply chain. Senegal is getting more attractive. Due to the large volumes of gas offshore, the country is set to become a leading LNG hub in future, and is perfectly positioned to export to Europe. There has been further interest in the region by other large operators Tullow Oil, Petronas, and Total. Offshore investment figures contributed by oil players to the government of Senegal indicate that USD$40 billion will be spent between 2020 and 2024, and another USD$60 billion before 2030.
The main projects associated with Senegal are BP-Kosmos’s Greater Tortue-Ahmeyim project (three phases under development- Phase 1 sanctioned in December 2018) and the recently sanctioned (January 2020) Woodside-Cairn’s Sangomar development (three potential phases- Phase 1 sanctioned); with future development opportunities on the horizon following the successful appraisal of the Yakaar and Teranga gas discoveries (could lead to a second LNG hub in the region after GT-A).
Senegal’s government has approved the plan to develop the Woodside Energy-led Sangomar field. The plan was submitted to the government in early December 2019. The plan involves a floating production, storage and offloading (FPSO) unit, with 23 subsea wells. Production capacity will be 100,000 barrels per day, with first oil targeted for early 2023. There is scope for additional phases in future, including gas exports to shore.
Woodside announced the final investment decision (FID), triggering deals with three main suppliers. MODEC will supply the floating production, storage and offloading (FPSO) vessel, Subsea Integration Alliance (SIA) will provide the umbilical’s and production systems, while Diamond Offshore will take two well-drilling contracts. FID was taken for the first phase of work on Sangomar, which will target a resource of 231 million barrels. Australia’s Woodside has a 35% stake in the area, while Scotland’s Cairn Energy has 40% and FAR 15%. The remaining 10% is held by Senegal’s state-owned Petrosen.
Senegal is officially launching its second 12 blocks licence round on January 31, with applications required to be in by July 31. It covers in the MSGBC Basin. The round is backed by the Senegalese Ministry of Petroleum and Energy and state-owned Petrosen, with support from GeoPartners.
