By Omar Bah
Senegal, Gambia’s neighboring country, has recently become an oil-producing nation. Woodside Energy, an Australian company, has announced the commencement of production for Senegal’s inaugural offshore project. The discovery of oil and gas fields in 2014 raised high expectations for Senegal’s economy, especially considering it is among the 25 least developed countries globally.
After much anticipation, Woodside commenced oil extraction from the offshore Sangomar field, approximately 100 kilometers south of Dakar. This long-awaited development is a significant milestone for Senegal’s energy sector and economy. The floating facility, with a storage capacity of 1.3 million barrels, emphasizes the potential of Senegal’s oil and gas industry. Located at 780 meters, the field contains oil and gas and is expected to produce between 100,000 and 125,000 barrels daily. While Senegal’s fossil fuel production may not rival larger producers like Nigeria, the industry is expected to generate significant revenue and transform the country’s economy.
The commencement of oil production is a significant milestone, remarked Charles Thiemele, Africa director of trading company BNG, during a press briefing. It represents the fruition of a long-standing project and is expected to alleviate the country’s energy expenses, which have previously posed significant budgetary challenges. The extracted oil, compliant with European and Asian market standards, is set for export and domestic use. Thiemele, a specialist in the oil sector, projected that Senegal could eventually reach a production capacity of over 200,000 barrels per day, putting it on par with countries such as the DRC and Gabon. The initial development phase of the oil field, which is still underway and includes plans for additional exploratory drilling, is estimated to cost between $4.9 and $5.2 billion. The project is jointly owned, with Woodside holding an 82 percent stake in the deepwater venture, while the remaining share is held by Senegal’s state-owned energy company, Petrosen.
The discovery of oil and gas fields in 2014 sparked great expectations for Senegal’s economy, one of the 25 least-developed countries in the world. However, the exploitation of the Sangomar field has encountered numerous setbacks. Initially scheduled for 2021, it was postponed due to strategic changes and further delayed by the financial challenges faced by the Australian company FAR, whose shares were eventually acquired by Woodside. The commencement of extraction at the Sangomar field signifies the dawn of a new era, not only for our country’s industry and economy but particularly for our people, remarked Thierno Ly, the managing director of Petersen. We are now better positioned than ever to seize opportunities for growth, innovation, and success in our nation’s economic and social development.
