Bp is in talks to pull out of Senegal's Yakaar-Teranga natural gas field, which would leave exploitation of the resource to Kosmos Energy and increase the stake held by the Senegalese state, according to people close to the discussions.
The natural gas field was presented as a source of hydrocarbons for Senegal's electricity generation projects, which would help to increase the country's electrification and reduce fuel prices. There is also export potential within the region.
Yakaar-Teranga, which includes discoveries first made in 2016, no longer fits BP's strategy, leading to discussions to exit the asset, said the sources, who asked not to be identified. Petrosen, Senegal's state-owned oil company, could increase its stake in the project as a result of the renegotiation, one of the sources said.
African countries have stressed the need to find solutions to end energy poverty, when 600 million people on the continent have no access to electricity. Europe is also increasingly seeking gas from the continent to replace Russian supplies.
The largest natural gas development project in the world, Greater Tortue Ahmeyim straddles the maritime border between Senegal and Mauritania and is expected to reach the commercial production next year
The two countries, Senegal and Mauritania, as well as the two international oil companies BP and Kosmos Energy in partnership with national companies from both countries are working together on the $4.8 billion project to produce 2.5 million tonnes of liquefied natural gas per year and 70 million cubic feet of natural gas per day in its first phase, which is shared equally between Senegal and Mauritania