bp exits Yakaar-Teranga natural gas field offshore Senegal over production, export disagreements

Katarina Hoije, Bloomberg November 26, 2023

(Bloomberg) – bp Plc exited one of its natural gas fields in Senegal earlier this month because of disagreement over the use of the commodity, the Senegalese government said.

While bp sought to export the gas from the Yakaar-Teranga natural gas field, Senegal wanted it for domestic use to fire power plants, Minister of Oil and Energy Antoine Félix Diome said in parliament on Saturday.

“We didn’t agree with bp on the daily production capacity, on the commercial strategy or on the date of the first gas” delivery, Diome said. “bp favored exports, while we want to develop the gas for the domestic market.”

Senegal sees Yakaar-Teranga, formerly operated by bp, as crucial for its gas-to-power strategy to help increase electrification in the West African nation and lower fuel prices. bp left its stake without any “financial compensation,” Diome said.

Meanwhile, Dallas-based Kosmos Energy LLC increased its stake in the oil field project to 90% from 30%. State-owned Petrosen, plans to eventually take a majority stake in the field.

Senegal wants to accelerate development at the site to deliver natural gas by 2026, compared with bp’s earlier target of 2028, Diome said. “Senegal can’t wait that long,” he said.

A spokesman for bp didn’t respond to telephone calls or a text message seeking comment, outside of business hours.

Yakaar-Teranga, located off the coast of Senegal, holds a total of about 25 Tcfg.

Senegal’s looking for a third partner to take a 34% stake by the production phase.

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