With first commercial oil and gas production expected later this year, Senegal is seeking new exploration partners to unlock further discoveries in its sedimentary basin. Leading the sector is national oil company PETROSEN, which will promote Senegal’s hydrocarbon potential, along with three flagship projects with strong production potential, at Invest in African Energy (IAE) 2024 in Paris – a two-day forum connecting global investors with Africa’s leading energy projects. Ahead of the forum, Energy Capital & Power spoke with Thierno Seydou LY, Director General of PETROSEN E&P, on the country’s oil and gas prospectivity and available investment and farm-in opportunities.
What are the primary exploration opportunities shaping Senegal’s on- and offshore market? How would you evaluate the prospectivity of Senegal’s sedimentary basins?
Our priority regarding exploration is to highlight the hydrocarbon potential in the available blocks of the Senegalese sedimentary basin. Various oil and gas discoveries have been made in the Senegalese basin over the years, but the recent offshore discoveries (between 2014 and 2017) have revealed interesting leads and prospects. Numerous works have been carried out – seismic surveys, drilling campaigns and studies – and these are redefining the basin with the assistance of new technologies.
What promotional activities is PETROSEN undertaking to sign contracts with new oil companies? Which blocks are presently open for investment?
In terms of promotional activities, we are maintaining contact with potential partners through key exhibitions around the world, but also through data rooms and roadshows. We currently have 16 blocks offshore and 5 blocks onshore that are available. The G&G data are available and hydrocarbon discoveries have been made in some of them. We are also working with renowned services companies to assist on the marketing of these data through their network and existing platforms.
Which key projects – from exploration to downstream to gas-to-power – still require partners to advance?
In general, all available blocks must be the subject of exploration campaigns that could lead to discoveries and gas-to-power projects. But we currently have three flagship projects, which need the support of partners to move very quickly to the production phase:
The Yakaar-Teranga Project (PETROSEN-Kosmos), which holds 20 trillion cubic feet (TCF) of gas and for which the FID has not yet been signed and whose objective is to move towards gas-to-power.
The Sebikhotane permit (PETROSEN-Oranto Petroleum), whose area has produced gas and oil in the past and which requires additional work to enter production.
The Fan and Fan South fields, which were the subject of discoveries through the FAN-1 and FAN SOUTH-1 wells and require evaluation work, which should lead to development work after signing an FID.
What is the ideal model for collaboration between PETROSEN and IOCs?
We generally sign a production sharing contract with IOCs that has two phases. The first is an exploration phase, which extends over 10 years with three phases: an initial period of 4 years, a first renewal of 3 years, and a second of 3 years. The second is an exploitation phase, which extends over 20 years with a renewal for a period of 10 years.
Are there any updates on future LNG exports to Europe?
In Senegal, we have the Greater Tortue Ahmeyim project – shared with Mauritania – with first gas scheduled for the third quarter of 2024. Production is estimated at 2.5 million tons of LNG intended for export. Other development phases are planned between 2026 and 2027 and will ultimately make it possible to produce up to 10 million tons of LNG. These different phases will require financing, hence the opening for national oil companies like ours to possible collaborations with partners who wish it.
What key outcomes is PETROSEN aiming to achieve at the upcoming IAE 2024 forum?
Our participation at the IAE 2024 forum will allow us to highlight the hydrocarbon potential of the Senegalese sedimentary basin, particularly at the level of the available offshore and onshore blocks. In addition, PETROSEN will present the investment opportunities on projects like Yakaar-Teranga where it is planned to produce 15 TCF of gas, with the ambition of making gas-to-power for the country and where there is always the possibility of doing a farm-in, as the FID has not been signed. Finally, we will present investment opportunities at Fan and Fan South prospects, where oil discoveries have already been made and where there is a need for an assessment program.
IAE 2024 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 14-15, 2024 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.