British Petroleum (BP) has departed from Senegal’s Yakaar-Teranga natural gas field due to a dispute with authorities regarding the usage of the resource, as per Sputnik reports.
The move came after Senegal’s Minister of Oil and Energy, Antoine Felix Diome, told the media that both sides are on opposite sides when it comes to priorities.
“We didn’t agree with BP on the daily production capacity, on the commercial strategy, or on the date of the first gas delivery. BP favours exports, while we want to develop the gas for the domestic market,” Diome was quoted by the media as saying.
The West African country wants to use the 25 trillion cubic feet of gas located at the field to enhance electrification and reduce fuel prices.
Diome also stressed that the Senegalese government is at loggerheads with the energy giant on the development timeline for the site. The African country reportedly planned to speed up the development for gas delivery by 2026, while the company set the deadline for 2028.
“Senegal can’t wait that long,” Diome was cited as saying. BP, the state official also added, relinquished its stake without any “financial compensation.”
Kosmos Energy Company, a U.S. entity and fellow stakeholder in the project, has raised its ownership in the field from 30% to 90%. Additionally, the Senegalese state-owned enterprise Petrosen aims to attain a majority stake in the field over time. Senegal is actively seeking a new partner to secure a 34% stake in the production phase.
