Senegal Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025
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Senegal’s marketed natural gas production in 2020 was valued at 2 million cubic feet per day (mmcfd), growing with a CAGR of more than 210% by 2025. Senegal currently has one producing gas field Gadiaga which saw its first gas in 2002 and has gone through multiple redevelopments to realize a peak in 2013. All the products from this field go to supplying local markets. The Gadiaga field is onshore however, the new developments are both offshore and the recent licensing round was for offshore blocks also signaling that the country wishes to further explore this terrain due to its recent success.
The Sangomar field will be the first oil development for the country being led by Woodside Petroleum after taking FID in January 2020. The outlook for Senegal is looking promising as with both the Sangomar and Tortue/ Ahmeyim developments having received FID and are due to see the first production in 2023. Woodside-operated Sangomar development will include 11 production wells and 12 injection wells tied back to an FPSO with a capacity for 100,000 barrels of oil per day. Phase 2 of the development will allow the participants to produce gas from the field utilizing the same FPSO with peak production and further crude oil. The second phase has not yet received FID however is forecast to see its first production around 2026.
Overview of Senegal natural gas production
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What are the market dynamics of Senegal’s exploration & production market?
Senegal is looking promising as both the Sangomar and Tortue/ Ahmeyim developments have received FID and are due to see their first production in 2023. The largest development in the country, Tortue/Ahmeyim is a large gas condensate field shared with neighboring Mauritania that received FID in 2018. The operator, BP called force majeure on the delivery of the FLNG vessel in 2020 as a result of COVID-19 impacts and the first gas will be pushed back to late 2023 rather than H1 2023 as originally planned, just a few months delay. The development of Tortue/Ahmeyim consists of 4 production wells tied to an FPSO, and an FLNG vessel for export protected by a breakwater. Senegal’s production allocation from the field will be available to international markets, natural gas which will supply the domestic market, and 4,000 bd of condensate. Production from the field is shared evenly with Mauritania. The revenue from the field is expected to be used to add to the development which will have similar production to phase 1. Phase 2 is currently without FID and is in FEED but the first gas is forecast for 2026.
The Yakaar-Teranga development is yet to receive FID however is expected to be an integrated development of the discoveries Yakaar, and Teranga which are stated to hold natural gas. A proposed phase 1 plan would be to develop the gas for the domestic market however a full development concept has not yet been announced. Moreover, in 2019, Senegal overhauled its fiscal regime which included terms weighted more towards the state as they look to benefit more from any future developments. The new terms also included higher royalty rates and more specificity on local content requirements. The fiscal terms in Senegal remain attractive and competitive as compared to neighboring countries and West Africa as a whole.
In addition, Senegal currently has 14 licensed blocks and launched the country’s first offshore licensing round in January 2020 including 12 blocks in the MSGBC Basin, the government had initially planned to allow applications until 31st July, however, was delayed to 30th May 2021 to allow companies more time considering the market conditions in 2020. This licensing round has the aim of increasing exploration due to the recent success seen in the basin. 2020 saw increased M&A activity in Senegal despite the pandemic as Woodside Energy completed its acquisition of FAR’s interest in RSSD (Rufisque Offshore, Sangomar Offshore, Sangomar Deep Offshore blocks) and the deal was finally completed in July 2021. Later in 2021 Woodside acquired a further 40% in RSSD from Cairn. The deal made by Woodside was to pre-empt Russian company Lukoil from acquiring Cairn’s stake in the development in fear of potential US sanctions on the company.
What are the assets of Senegal’s exploration & production market?
Sangomar Phase 1 and Tortue (Senegal) are the assets considered for the gross crude oil and condensate production. Gadiaga and Tortue (Senegal) are the assets considered for the marketed natural gas production.
Which are the major players in Senegal’s exploration & production market?
The major companies in Senegal’s natural gas production are Africa Fortesa Corp, Petrosen, Kosmos Energy Ltd., and BP Plc. The companies of the gross crude oil and condensate production are BP Plc, Kosmos Energy Ltd., Petrosen, and Woodside Petroleum Ltd. Kosmos Energy Ltd is expected to dominate natural gas production even during the forecast period. BP Plc is expected to outperform Africa Fortesa Corp & Petrosen in natural gas production during the forecast period.
Senegal exploration & production market, by key players
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Market report scope
Market Size (Year – 2020) | Natural Gas Production – 2 mmcfd |
Growth rate (CAGR) | Natural Gas Production – CAGR >210% |
Base year for estimation | 2020 |
Forecast period | 2021-2025 |
Key Players | Kosmos Energy Ltd, Africa Fortesa Corp, Woodside Petroleum Ltd, Petrosen, and BP Plc |
Scope
This report provides an overview of the Senegal exploration & production market. The report includes:
- Key details of active and upcoming oil and gas assets in the country.
- Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
- Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.
Reasons to Buy
- Gain a strong understanding of Senegal’s E&P sector.
- Facilitate decision-making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
- Assess your competitor’s production outlook and licensed blocks count in the country.
- Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.
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Frequently asked questions
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What is the production volume of natural gas in Senegal in 2020?
Senegal’s marketed natural gas production was valued at 2 million Cubic Feet Per Day (mmcfd) in 2020.
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What is the growth rate of Senegal’s natural gas production?
Senegal’s natural gas production is expected to grow at a CAGR of more than 210% during 2021-2025.
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Which are the key players in Senegal’s exploration & production market?
The key companies in Senegal’s exploration & production market are Kosmos Energy Ltd, Africa Fortesa Corp, Woodside Petroleum Ltd, Petrosen, and BP Plc.
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