Senegal: Woodside discovers more oil than expected on Sangomar

Woodside Energy, the Australian multinational responsible for operating the Sangomar offshore oil field, has announced a significant reassessment of the site's hydrocarbon reserves. This update, which adds 16.2 million barrels of oil equivalent to proven reserves (1P), confirms the stability of production and strengthens Senegal's economic prospects in the oil sector.

Production from the Sangomar field is expected to remain at around 100,000 barrels per day, a level that confirms the long-term viability of the project. This production stability is crucial for Senegal, as it ensures a regular supply of crude oil, particularly for Société africaine de raffinage (SAR).

Oil production from Sangomar is already having a direct impact on Senegal's refining capacity. SAR recently announced that it had processed 650,000 barrels of crude oil from the Sangomar field, a first that marks an important step in the local integration of the oil value chain. This integration will enable Senegal to reduce its dependence on imports of petroleum products and strengthen its energy autonomy.

"The processing of Sangomar oil by SAR is a major step forward for our country," said SAR. "It demonstrates our ability to exploit and process our natural resources locally, which is essential for our economic development."

Increased reserves at Sangomar and stable production reinforce the role of the oil and gas sector in the Senegalese economy. With the simultaneous exploitation of oil from Sangomar and gas from the Grand Tortue Ahmeyim (GTA) project, Senegal is banking on economic expansion underpinned by its natural resources.

According to a recent study by the African Development Bank (AfDB), Senegal's economic growth should reach 9.3% in 2024 and 10.2% in 2025. However, the AfDB warns against the uncertainties associated with possible revisions to oil and mining contracts, which could influence the development of the sector.

"The oil and gas sector is an essential pillar of our economy," said Modou Ndiaye, a local economic analyst. "Projects like Sangomar and GTA offer huge opportunities for job creation, investment and diversification of our economy."

The development of Sangomar's reserves is part of a wider effort to optimise Senegal's energy resources. The Senegalese government is working to maximise the economic benefits of its natural resources while attracting new investment in the energy sector.

"Woodside Energy remains committed to supporting the development of the Sangomar field and contributing to Senegal's economic growth," said a Woodside spokesperson. "We will continue to work closely with the Senegalese authorities and local partners to ensure that this project benefits everyone."