WOODSIDE Energy has successfully achieved first oil production at Senegal’s inaugural offshore oil project, the Sangomar field development. This milestone underscores the effective collaboration between Woodside Energy and Senegal’s national oil company, Petrosen, demonstrating their shared commitment to advancing energy security and industrialisation across the MSGBC region.
The African Energy Chamber (AEC), a strong advocate for oil and gas development in Africa, applauds the project partners for reaching this historic milestone. First production is poised to drive new opportunities for economic growth in the country and affirms the critical role oil and gas play in Africa.
Phase one of the Sangomar field development stands as a testament to Senegal’s commitment to advancing its energy sector. The deepwater project represents a significant leap forward in technological innovation and project execution. At the heart of this endeavour lies the Léopold Sédar Senghor FPSO, stationed 100 km offshore Senegal. With a production capacity of 100,000 barrels per day and storage facilities capable of accommodating 1.3 million barrels, the FPSO vessel exemplifies Senegal’s capability to undertake and manage extensive energy projects.
The ambitious scope of phase one, comprising 23 wells with ongoing drilling activities, underscores Senegal’s determination to harness its natural resources for the benefit of its people. With a project cost between $4.9bn and $5.2bn, Sangomar showcases the country’s ability to execute complex projects on schedule and within budget, enhancing its reputation as an attractive investment destination.
‘Credit must be given to Woodside CEO Meg O’Neill, Petrosen, and the Woodside team for their gusto, resilience, and commitment to delivering this project. The relentless drive in meeting their commitment to Senegal is impressive. In Woodside, Senegal sees a world-class operator that produces energy sustainably and champions local communities through robust local content and community outreach programs,’ stated NJ Ayuk, Executive Chairman of the AEC.
The achievement of first oil from the Sangomar field represents a milestone not only for Senegal but for the entire MSGBC region. The project brings online a new energy source at a time when energy demand is projected to increase rapidly across the region and is poised to significantly reduce reliance on imported petroleum. The project also underscores the potential for large-scale investments offshore Senegal, laying the foundation for new developments to commence.
‘Exploration is back on track as the MSGBC Basin now marries a great geological resource with a strong balance sheet, making it more attractive. There is much more oil and gas to be found in Senegal. Woodside’s success in the MSGBC Basin will spark new exploration efforts, boosting oil production and keeping prices low for citizens around the region,’ added Ayuk.
The next project on the horizon is the Greater Tortue Ahmeyim (GTA) development, which anticipates first production by Q3/Q4 this year. The arrival of the FPSO vessel this month – which will process over 500 million standard cubic feet of gas per day – signifies a significant milestone for the project, enabling Senegal to utilize its abundant gas resources for domestic consumption and export. The development of the GTA project, along with plans for a gas-to-power plant near Saint-Louis, highlights Senegal’s strategic approach to energy infrastructure development, cultivating socio-economic growth and improving energy access for its citizens.
As Senegal transitions into an oil and gas-producing nation by late 2024, the role of hydrocarbons in the MSGBC landscape becomes increasingly pivotal. Oil and gas will continue to play a significant role in the region and continent’s energy mix, serving as a crucial source of revenue and a catalyst for a just energy transition.
‘We believe the revenues from oil would empower Senegal’s government and citizens to develop their country. Senegal’s future is bright, but we can only secure that future by strengthening legislation, maintaining the sanctity of contracts, promoting an enabling environment, supporting local content, emphasising education, following a balanced development paradigm, and utilising the best skills in the oil and gas industry through partnerships. I am confident that both the government and Woodside will continue this strong working relationship and partnership to make Senegal the regional hub for energy,” Ayuk concluded.
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