Senegal: The reasons behind BP's withdrawal from Yakaar-Teranga

Senegal's Minister of Petroleum and Energy, Antoine Felix Diome, has explained the reasons behind BP's decision to withdraw from the Yakaar - Teranga gas project, despite its promising progress.

One of the main points of disagreement was the starting date for gas production. Senegal had planned to start in 2026, but BP wanted to extend this deadline to 2028, which the Senegalese government refused, given the commitments made.

BP then proposed to reduce the amount of gas produced daily, a proposal rejected by the Senegalese government, which insisted on maintaining the initial volume of 100,000 m³ per day.

Another disagreement concerned the use of the gas. The Senegalese government prioritized supplying the local market, while BP favored exports. Senegal plans to create a gas hub to use the gas in the production of fertilizers and other petrochemicals.

The sale of BP's shares represents an opportunity for Senegal and the new operator, Kosmos. BP held 60% of the shares, of which 45% are now held by Kosmos and 15% by PETROSEN.

The Minister also pointed out that, in Senegal's oil contracts, the exploration risks are assumed by the companies, but in the production phase, the percentages are adjusted to increase Petrrosen's share, up to 35%, not counting the State's direct share in the profits generated by oil exploitation.