Senegal’s state-owned oil company said the Yakaar-Teranga gas project will require about $7.5 billion in investment and could significantly reduce the country’s energy subsidy costs once production begins.
Mouhamadou Diop, CEO of Petrosen’s trading arm, said at an event in Dakar that the project could help cut Senegal’s annual $1 billion energy subsidy bill and gradually reduce reliance on imported fuels.
Kosmos Energy discovered the offshore Yakaar-Teranga field about a decade ago. Alongside the Grand Tortue Ahmeyim development, the discovery strengthened Senegal’s position as an emerging gas producer in West Africa. The country plans to use the gas for electricity generation and to support petrochemical and fertilizer industries.
BP initially partnered on the Yakaar-Teranga project but exited in 2023. Kosmos Energy’s contract is expected to expire in July, which could leave Senegal as the sole stakeholder in the project as the country seeks greater control over its natural resources.
Senegal’s gas ambitions follow progress in its oil sector after the offshore Sangomar field began production in 2024.
Diop said Senegal still imports refined petroleum products despite producing crude oil. He explained that the government aims to reinvest oil and gas revenues into exploration activities, strengthen local operatorship, and develop projects independently.
According to Diop, the first phase of Yakaar-Teranga would cost around $2.5 billion and produce about 300 million cubic feet of gas per day for the domestic market. A second phase, estimated at $5 billion, would focus on downstream industries including fertilizer, petrochemicals, steel, and cement production.
Diop said Senegal could finance the project through regional bond markets, development finance institutions and diaspora-backed investment. He added that long-term offtake agreements could help secure investment-grade project financing.
source: worldoil.com
African Energy Council