Senegal - Mauritania: The courts rule in BP's favour in the dispute with Kosmos Ennergy over the GTA project.

Kosmos Energy announced on Tuesday that an arbitration tribunal in Paris has ruled in favour of BP in the dispute over the Grande Tortue Ahmeyim (GTA) project off the coasts of Senegal and Mauritania. The arbitrator prohibited Kosmos from selling to third parties the liquefied natural gas (LNG) produced by the project, a central element of BP's energy strategy, particularly as part of its transition to cleaner energy sources.

LNG plays a key role in BP's global ambitions, and the company has successfully built a strong portfolio of projects in sub-Saharan Africa, a region poised to become a major hub for LNG exports. Countries such as Nigeria, Angola, Cameroon and Equatorial Guinea are already shipping significant volumes, reinforcing the continent's strategic position in the global gas trade.

The dispute dates back to last year, when Kosmos Energy, a US-listed oil and gas exploration company, and BP Gas Marketing, a subsidiary of BP, submitted a request for arbitration to the International Chamber of Commerce (ICC). The claim concerned the terms of sale of LNG produced during phase 1 of the GTA project. The arbitrator finally issued a final and binding decision, prohibiting Kosmos from selling LNG cargoes to third parties for the duration of the current contract, which includes an option to terminate in 2033, according to a Kosmos press release.

Although the arbitration imposes restrictions on the sale of LNG, Kosmos said the ruling does not affect the original terms of the sales agreement or its long-term financial prospects. BP, which holds a 56% majority interest in the GTA project, is also the operator. Its subsidiary is the sole buyer of the 2.5 million metric tonnes per year of LNG produced under a 20-year contract.

By November 2023, BP had declared the GTA project to be 90% complete, with start-up scheduled for the first quarter of 2024, albeit slightly later than originally forecast. At the BloombergNEF conference in London, Kosmos Energy CEO Andrew Inglis confirmed that the project is expected to come on stream by the end of the year. Kosmos holds a 26.8% stake in this major project, which is of key importance to the region's energy diversification.

At the same time, BP and other major energy companies such as Shell are also involved in a legal dispute with Venture Global LNG. They accuse this LNG producer of restricting access to its supplies while exporting gas worth an estimated $18 billion, according to documents filed with US regulators. These disputes illustrate the growing tensions surrounding access to energy resources in a global context of transformation of gas markets and energy transition.