Senegal joins oil producers with launch of first offshore field

BREAKING NEWSJune 16, 2024 at 8:19 PM UTC

TLDR

Senegal commenced oil and gas production through Woodside Energy's Sangomar project, aiming for 100,000 barrels per day.
The FPSO named Leopold Sedar Senghor with a storage capacity of 1.3 million barrels will handle offshore loading operations.
Woodside's $5.2 billion project will involve 23 wells, including production and injectors, with future plans for more drilling activities.

Senegal this week became an oil and gas producer following Woodside Energy's announcement of the first oil at its Sangomar project on June 11. The initial phase of Sangomar, alongside BP's GTA gas project, is poised to transform Senegal's economy, with an expected production of 100,000 barrels per day (b/d) of crude oil.

Oil will be loaded from the Leopold Sedar Senghor FPSO, named after Senegal's first president, situated approximately 100 km offshore Dakar, the capital. The FPSO unit boasts a storage capacity of 1.3 million barrels. Woodside plans to export Sangomar's crude internationally rather than selling it locally.

The overall project, valued at up to $5.2 billion, will encompass 23 wells, including 11 production wells, 10 water injectors, and two gas injectors in its first phase. Woodside has also indicated plans to drill a 12th production well during the current campaign.

Key Takeaways

Senegal's emerging fossil fuel production, while not anticipated to rival larger producers like Nigeria initially, holds the promise of generating substantial revenue and fostering economic transformation. The country aims to export extracted oil that meets European and Asian market standards, while also serving domestic needs. Analysts foresee Senegal potentially reaching production levels exceeding 200,000 barrels per day in the future, approaching outputs seen in countries such as the DRC and Gabon.

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Woodside

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