Senegalese Opportunities Entice Global Investors ahead of African Energy Week (AEW) 2023
2023 is expected to be a milestone 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 immense investment potential across the wider MSGBC basin.
Providing insight into the new opportunities emerging for investors and project developers, Thierno Seydou Ly, Director General, Petrosen E&P, delivered a presentation during the Invest in African Energy Forum in Paris this week, ahead if the upcoming African Energy Week (AEW) conference and exhibition – scheduled for 16-20 October in Cape Town.
Senegal’s economic growth is expected to remain strong throughout the period 2023-2027, boosted by the start of oil and gas projects and new investment flowing inwards. In this scenario, Ly emphasized that Senegal’s legal and regulatory framework make the country an investment destination of choice, with implemented policies prioritizing the protection of private investors and fair sharing of benefits while offering long-term relationships between government and global players.
“There are many opportunities in Senegal and we want to create partnerships, including technical and financial partnerships. The stability of the country in terms of democracy means that your investments will be 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 put in place an ambitious upstream agenda that aims to unlock the full potential of the offshore market. According to Ly, the Senegalese basin is divided by 29 blocks, with 16 offshore and six onshore blocks currently available for offer.
Ly shared that as of April 2023, the country’s two major hydrocarbon projects are moving fast. The GTA project is 90% complete, with 2.5 million tons per annum (mtpa) of liquefied natural gas (LNG) expected to be produced from Q4 2023. Ly added that the concept for Phase Two of GTA has been selected by the development partners, which would see production increase by 2.5 to 3 mtpa between 2027 and 2028.
Additionally, as of April 2023, the Sangomar project is 85% complete, with between 75,000 and 125,000 barrels per day to be produced from 2023. A domestic refinery will treat part of the production, with the field’s associated gas developed in a specific phase (2025-2026). Senegal also expects FID for the Yakaar-Teranga project by Q1 2024, with 150 mmscfd to be produced from 2026 for the local market. Future phases are planned and expected for the development of local industries – fertilizer, urea, methanol, mining and more – and LNG export.
Meanwhile, Ly stated that under the Oil and Gas Master Plan, Senegal is pursuing several other developments including an ammonia/urea plant – of which a conceptional study is underway; a refinery upgrade – phase 1 to increase capacity from 1.2 to 1.5 million tons (finalized) and phase 2 to 3.5 million tons (under preliminary studies); a liquefied petroleum gas storage facility (feasibility studies); a gas-to-power pipeline network (under FEED studies); a natural gas virtual pipeline (preliminary studies); a CNG and LNG fueling station (preliminary studies) and a fertilizer plant (preliminary studies).
As such, opportunities for local players and entrepreneurs are growing steadily, with the government’s focus on local content development set to play a key role in expanding the domestic market.
“We want to use the workforce of Senegal as much as possible for the development of the oil and gas sector in Senegal. It will be a win-win situation for both the workforce and companies as it will reduce costs.”
This year’s edition of AEW will further unpack the range of investment opportunities present across 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 continues to flow. On the back of an enabling environment and with Petrosen serving as a reliable partner, the country is well on its way to economic prosperity on the back of oil and gas.
Distributed by APO Group on behalf of African Energy Week (AEW).
About African Energy Week:
AEW 2023 is the African Energy Chamber’s annual energy event. This year’s edition takes place in Cape Town from October 16-20 under the theme, ‘The African Energy Renaissance: Prioritizing energy poverty, people, the planet, industrialization and free market.’