Senegal has announced plans to nationalize the Yakaar-Teranga offshore gas project, currently operated by the U.S.-based company, Kosmos Energy. The initiative aims to ensure the country’s domestic gas needs are met, according to Senegalese Energy Minister Birame Souleye Diop. Speaking at a conference, Diop emphasized, “It’s a project we have operators for, and we want to nationalize it and give Petrosen, which has the expertise, the opportunity to develop this project to meet domestic gas needs… without ruling out the possibility of exporting.”
In 2023, Kosmos Energy became the operator of the Yakaar-Teranga project after BP exited the field. Currently, Kosmos holds a 90% stake in the project, while Senegal’s national oil company, Petrosen, owns the remaining 10%. A spokesperson for Kosmos confirmed that the company’s license for the Yakaar-Teranga gas field is set to expire in July 2026.
The Yakaar-Teranga project is among the largest gas discoveries in recent years, estimated to contain approximately 25 trillion cubic feet of advantaged gas-in-place. Kosmos has been collaborating closely with Petrosen on a development concept aimed at providing cost-competitive gas to support Senegal’s rapidly growing domestic market. Additionally, the project includes plans for an offshore LNG facility to facilitate exports to international markets.
Development Plans and Phased Approach
Kosmos Energy is considering a phased approach for the development of the Yakaar-Teranga project, with Phase 1 focused on delivering gas for domestic use while also enabling LNG exports. As of now, the project has not yet reached a final investment decision.
Alongside its involvement in Yakaar-Teranga, Kosmos is also a partner in the Greater Tortue Ahmeyim project, which spans both Senegal and Mauritania. This project, which includes BP and Mauritania’s national oil company SMH as partners, saw its first LNG cargo loaded for export in April 2023. The Greater Tortue Ahmeyim project is projected to produce around 2.3 million tons of LNG annually for over 20 years.
Senegal’s move to nationalize the Yakaar-Teranga project reflects a significant step in its energy strategy, aiming to leverage its natural resources for the benefit of the local economy while keeping the door open for future exports. The developments surrounding this project will likely have lasting implications for Senegal’s energy landscape and its approach to managing its natural gas reserves.
