2023 is expected to be a landmark year for Senegal as the country witnesses first oil and gas production from the Sangomar and Greater Tortue Ahmeyim (GTA) projects. These projects are expected to usher in a new era of economic growth for the country while underscoring the huge investment potential in the wider MSGBC basin.
Thierno Seydou Ly, Director General of Petrosen E&P, provided an insight into the new opportunities emerging for investors and property developers and gave a presentation this week at the Invest in African Energy Forum in Paris ahead of the upcoming African Energy Week (AEW) conference and exhibition – scheduled for October 16-20 in Cape Town.
Senegal’s economic growth is expected to remain strong over the period 2023-2027, boosted by the start of oil and gas projects and new investments pouring in. In this scenario, Ly emphasized that Senegal’s legal and regulatory framework makes the country a favored investment destination, with implemented policies that prioritize private investor protection and fair distribution of benefits, while providing long-term relationships between government and global players .
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“There are many opportunities in Senegal and we want to create partnerships, including technical and financial partnerships. The country’s stability in terms of democracy means your investments are protected. Our legal framework makes it possible to protect investments and create a win-win environment for investors,” he stated.
Petrosen, as the national oil company, has set an ambitious upstream agenda that aims to unlock the full potential of the offshore market. According to Ly, the Senegal basin is divided into 29 blocks, with 16 offshore and six onshore blocks currently available.
Ly said that as of April 2023, the country’s two major hydrocarbon projects are moving fast. The GTA project is 90% complete, with an expected production of 2.5 million metric tons of liquefied natural gas (LNG) per annum (mtpa) from Q4 2023. Ly added that the concept for phase two of GTA is selected by the development partners, which would increase production by 2.5 to 3 mtpa between 2027 and 2028.
In addition, the Sangomar project is 85% complete as of April 2023, with between 75,000 and 125,000 barrels per day to be produced from 2023. A domestic refinery will handle part of the production, developing the associated gas from the field at a specific stage (2025-2026). Senegal also expects FID for the Yakaar-Teranga project in the first quarter of 2024, producing 150mmscfd for the local market from 2026. Future phases are planned and expected for the development of local industries – fertilizer, urea, methanol, mining and more – and LNG exports.
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Meanwhile, Ly stated that under the oil and gas master plan, Senegal is pursuing several other developments, including an ammonia/urea plant – a conceptual study of which is underway; an upgrade of the refinery – phase 1 to increase capacity from 1.2 to 1.5 million tonnes (completed) and phase 2 to 3.5 million tonnes (under preliminary studies); a liquefied petroleum gas storage facility (feasibility studies); a gas-to-electricity pipeline network (in the context of FEED studies); a virtual natural gas pipeline (preliminary studies); a CNG and LNG filling station (preliminary studies) and a fertilizer factory (preliminary studies).
As a result, the opportunities for local players and entrepreneurs are steadily growing, with the government’s focus on local content development playing a key role in expanding the home market.
“We want to use Senegal’s workforce as much as possible for the development of the oil and gas sector in Senegal. It will be a win-win situation for both staff and companies as it will reduce costs.”
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This year’s edition of AEW will further unfold the range of investment opportunities in the Senegalese energy market. From upstream oil and gas to downstream infrastructure to renewable energy and power developments, Senegal is on track to become a regional energy hub as long as investment keeps flowing. Thanks to a favorable climate and with Petrosen as a reliable partner, the country is well on its way to economic prosperity thanks to oil and gas.
Distributed by APO Group on behalf of African Energy Week (AEW).
About African Energy Week:
AEW 2023 is the annual energy event of the African Energy Chamber. This year’s edition will take place in Cape Town from 16 to 20 October with the theme ‘The African energy renaissance: prioritizing energy poverty, people, the planet, industrialization and the free market’.
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