DAKAR, Senegal, August 1, 2024 -- The African Energy Chamber (AEC) (https://EnergyChamber.org/) has carried out a working visit to Senegal, meeting with Senegal's Minister of Energy, Petroleum & Mines, Birame Souleye Diop, and key stakeholders in the oil and gas industry ­– aiming to promote further collaboration and investment in the sector.

During the visit, the AEC engaged in productive discussions with Minister Diop, focusing on critical issues that will drive the growth and sustainability of Senegal's oil and gas industry. The talks centered on strategies to increase local content – ensuring that Senegal's citizens benefit from the country's natural resources through greater participation of local companies and workers in the industry. Additionally, opportunities to foster greater cooperation among stakeholders, including government agencies, international oil companies and local businesses were discussed, recognizing that collaboration is key to driving investment and progress in the sector. Initiatives to improve Senegal’s oil and gas industry were also explored, with the aim of enhancing overall industry performance.

As the voice of the African energy sector, the AEC remains steadfast in its advocacy for oil and gas development in Africa. Africa’s wealth of resources – estimated at 125 billion barrels of proven oil and 620 trillion cubic feet of proven natural gas – offer the continent the solution it needs to accelerate industrialization, electrification and inclusive economic growth. Senegal is taking the right approach to development in this regard and the AEC acknowledges the government’s constructive efforts to foster collaboration and investment.

In a significant milestone for the country, Senegal achieved first oil production at the Sangomar oilfield in June 2024. With a capacity of 100,000 barrels per day (bpd), the project not only introduces a reliable and affordable fuel source for the country but positions Senegal as a major African producer. Developed through a partnership between Senegal’s NOC Petrosen and exploration and production company Woodside Energy, the Sangomar project demonstrates the vital role collaboration plays in supporting dual goals of achieving energy security while advancing the energy transition in Africa. The project – alongside the Greater Tortue Ahmeyim (GTA) LNG project which expects first gas production this year – underscores how oil and gas can serve as a catalyst for sustainable development in Africa.

As the first large-scale offshore oil development in Senegal, Sangomar stands as a testament to the value of industry collaboration in developing deepwater projects. The project’s phase one features an FPSO - Léopold Sédar Senghor – situated 100 km off the coast of Senegal, with a capacity of 100,000 bpd. Throughout phase one, 23 wells will be drilled, with operations already underway.

Beyond Sangomar, the next project on the Senegalese horizon is GTA, which is on track to start operations by Q4 this year. The project – developed through a partnership comprising energy majors bp and Kosmos Energy, Petrosen and Mauritania’s SMH – has a production capacity of 2.3 million tons in its first phase. Situated on the maritime border of Senegal and Mauritania, the project has set a strong benchmark for collaborative energy developments in Africa.

In addition to collaboration, GTA is set to galvanize clean energy production in the MSGBC region. The project showcases both Senegal and Mauritania’s commitment to harnessing their gas resources for sustainable development, serving as a catalyst for the region’s just energy transition. At a time when western nations are calling for an end to fossil fuel utilization, both the Sangomar and GTA projects highlight the critical value these resources hold in Africa.

As Senegal’s President Bassirou Diomaye Faye so aptly noted, “I am thinking of the unfair conditions of the energy transition, when some partners prohibit the foreign financing of fossil energy sources, including gas, while they continue to use much more polluting sources such as coal themselves.”

Oil and gas projects are already transforming Senegal’s economy. Notwithstanding opportunities regarding energy supply, projects such as the Sangomar and GTA developments serve as a crucial source of revenue while creating thousands of jobs and associated business opportunities. The projects have also showcased Senegal’s capability to undertake and manage extensive energy projects on a significant scale.

“Senegal’s achievement of first oil production is a historic milestone - both for the country and the broader MSGBC region – and we anticipate the start of gas production this year to further enhance the attractiveness of the market. We support President Faye’s call for a just transition on fossil fuels, highlighting the need to address the imbalance of Western nations restricting fossil fuels in Africa while continuing to utilize more polluting sources. We stand in solidarity with Senegal in promoting equitable energy transition conditions and remain committed to working with stakeholders to drive investment and growth in Senegal's energy sector,” stated NJ Ayuk, Executive Chairman of the AEC.