Sangomar FPSO (conceptual drawing)
Senegal joined the ranks of oil-producing countries on Tuesday after Australian group Woodside Energy announced that production had begun at the West African country's first offshore project.
While Senegal's fossil fuel production is not expected to be as high as that of major producers such as Nigeria, the oil and gas industry is expected to bring billions of dollars in revenue to the country and help transform the economy.
“This is a historic day for Senegal and for Woodside,” said the company's chief executive officer Meg O'Neill, calling the extraction of “first oil” from the Sangomar field a “significant milestone.”
The floating facility is moored about 100 kilometres offshore and Woodside said the vessel has a storage capacity of 1.3 million barrels.
The deepwater project aims to produce 100,000 barrels of oil per day. The field also contains natural gas reserves.
Woodside holds an 82% stake in the project, with the remainder held by Senegal's state-owned energy company Petrocen.
The discovery of oil and gas fields in 2014 has raised hopes for the developing country, with Petrosen predicting the sector will generate more than $1 billion in annual revenue over the next 30 years.
Petrocen general manager Thierno Ly said the start of production marked the start of a “new era” for Senegal's “industry and economy”.
“Never in our nation's economic and social development have we been in a better position to grow, innovate and succeed,” he said.
The first phase of development of the Sangomar field consists of 23 wells, of which 21 have been drilled.
Senegalese President Bashir Diomae Faye, who took office in April, announced the renegotiation of oil and gas contracts as part of reforms he promised during his election campaign.
Senegal also has a liquefied natural gas project on its border with Mauritania that could start production in the third quarter.
The Greater Tortue Ameyim LNG project, which involves British energy giant BP, US's Kosmos Energy, Mauritanian oil and gas company SHM and Petrocen, aims to produce about 2.5 million tonnes of liquefied natural gas per year.
Despite growing pressure from around the world to phase out fossil fuels that emit climate-warming greenhouse gases, several African countries are forging ahead with oil and gas projects.
The African countries involved argue that it is unfair to impose such restrictions on African nations at a time when Western countries have become rich from fossil fuels.
At the same time, the continent is already feeling the brunt of rising temperatures and changing rainfall patterns, which the UN says “threatens the health and safety, food and water security, and socio-economic development of the African people.” — AFP