Senegal : Petronas in the front line after BP withdraws from Yakaar-Teranga

BP's withdrawal from the Yakaar-Teranga offshore gas project in November 2023 has forced the Senegalese government to look for new partners. Under President Bassirou Diomaye Faye, the Senegalese authorities identified Petronas, Malaysia's national oil company, as a potential candidate to replace BP.

This potential partnership was discussed during Malaysian Foreign Minister Mohamad bin Haji Hasan's visit to Dakar in May 2024. This move demonstrates Kuala Lumpur's strategic interest in the project, prompting Petronas to consider taking a position on this vital deposit for the Senegalese economy.

However, collaboration between Petronas and Dakar will only be possible after an agreement has been reached with Kosmos Energy, the current US operator of the Yakaar-Teranga field. Kosmos recently announced its intention to reduce its stake from 90% to a range of 25-33%, a potential opening for Petronas and Senegal's national oil company Petrosen.

Discussions are also underway to harmonize extraction volumes and gas purchase prices, critical aspects that had already led to an impasse with BP. The Yakaar-Teranga project, which aims to meet domestic energy needs and export liquefied gas, remains a strategic priority for Senegal.