Senegal plans to nationalise the Yakaar-Teranga gas project, operated by Kosmos Energy and estimated to be one of the world's largest discoveries in recent years, with a view to meeting domestic gas needs, its energy minister said.
Kosmos Energy, which has a 90% stake, became the operator of the Yakaar-Teranga gas field in 2023 after BP decided to exit. Kosmos' licence for the field runs out in July 2026, a company spokesperson said when asked about the minister's comments.
Kosmos shares fell on Wednesday in New York, hitting a five-year low. They were down 6.1% at 1637 GMT.
State-controlled company Petrosen holds the remaining 10% in the field, which is estimated to hold around 25 trillion cubic feet of recoverable gas, even more than the Leviathan field offshore Israel, which has around 22 tcf of recoverable gas.
"It's a project we have operators for, and we want to nationalise it and give Petrosen, which has the expertise, the opportunity to develop this project to meet domestic gas needs... without ruling out the possibility of exporting," Energy Minister Birame Souleye Diop said at a conference in the town of Diamniadio on Tuesday.
Petrosen said last year it expected a final investment decision in 2025. So far no decision has been made public.
"Since discovering natural gas at Yakaar-Teranga in 2017 and following BP’s departure from the licence in 2023, Kosmos Energy has been working hard with Petrosen to find a suitable partner and agree a commercially viable development concept. The current Yakaar-Teranga licence expires in July 2026," Kosmos said.
Kosmos and Petrosen, as well as BP, are also shareholders in the Greater Tortue Ahmeyim liquefied natural gas project offshore Senegal and Mauritania, which is estimated to hold 15 tcf of potentially recoverable gas and which loaded its first cargo in April.
(Reuters)