Senegal: Shell, "main buyer" of Sangomar crude oil

The first cargo of crude oil from Senegal is currently being loaded at Woodside's Sangomar oil project, three weeks after the start of oil production in the West African country, according to vessel tracking data and market sources.

The Greek-flagged tanker Maran Poseidon docked at the project's 100,000 barrels per day (bpd) export terminal at 1pm (London time, 12pm GMT) on 1 July, according to S&P Global Commodities at Sea data, which lists Shell International Trading as charterer of the 1.06 million barrel vessel.

On 11 June, Commodity Insights reported that Shell was the buyer of the first cargo of Sangomar crude. Shell did not respond to a request for comment.

This first export shipment represents a crucial step for Senegal, which joins the ranks of the world's oil and gas exporters thanks to this $5.2 billion project. It also marks the arrival on the market of additional barrels of non-OPEC+ crude, as the alliance of producers strives to stabilise the market and boost prices against a backdrop of rising production in the Americas and galloping global inflation.

Woodside, the Australian operator of the Sangomar project with an 82% stake, in partnership with state-owned Petrosen (18%), did not respond to requests for comment.

It is not yet clear where the crude will go after loading, but a Woodside spokesman previously told Commodity Insights that it "has medium sour qualities similar to Oman and Johan Sverdrup (Norway)". Oman Blend crude is mainly sold in China, while Johan Sverdrup is popular with refiners in Poland, the Netherlands and Germany, according to CAS data.

Senegalese crude oil is loaded from the 1.3 million barrel floating production, storage and offloading vessel Léopold Sedar Senghor, anchored around 100 kilometres off Dakar, the Senegalese capital.

The project comprises 24 wells, including 12 production wells, the last of which has yet to be drilled, as well as 10 water injectors and two gas injectors in phase 1. Woodside did not comment on the form that a possible second phase would take.

"The first oil production from the Sangomar field marks a new era not only for our country's industry and economy, but more importantly for our people," said Thierno Ly, director of Petrosen E&P, in a statement earlier this month. "We have never been in a better position to seize opportunities for growth, innovation and success in the economic and social development of our country."

This first shipment comes less than four months after President Bassirou Diomaye Faye won a surprise victory in the first round of elections, promising to renegotiate oil and gas contracts. According to sources, no action has yet been taken in this regard.

Senegal is also moving closer to the launch of the long-delayed BP-operated Greater Tortue Ahmeyim LNG project, which straddles the Senegal-Mauritania border and is expected to come on stream during 2024. BP forecasts that LNG production could reach 2.3 million tonnes a year in the first phase of the project, in which Kosmos Energy also has a stake.