(CTN News) – The Senegalese government has announced that BP Plc recently withdrew from a gas field in Senegal due to a dispute regarding resource utilization.
Minister of Oil and Energy, Antoine Félix Diome, revealed in parliament that BP intended to export the gas from the Yakaar-Teranga natural gas field, while aimed to utilize it domestically for powering their plants.
Diome stated there were disagreements with BP regarding the daily production capacity, commercial strategy, and the date of the first gas delivery. While BP preferred exports, Aimed to develop gas for the domestic market.
Senegal considers Yakaar-Teranga, previously operated by BP,
As vital for its gas-to-power strategy to enhance electrification in the West African nation and reduce fuel costs.
Diome mentioned that BP relinquished its stake without receiving any financial compensation.
Kosmos Energy LLC, based in Dallas, has raised its share in the oil field project to 90% from 30%. Meanwhile, Petersen, a state-owned company, intends to acquire a majority stake in the field in the future.
To expedite the development process, Senegal aims to produce gas by 2026, which is earlier than BP’s initial goal of 2028, according to Diome. He added that cannot afford to wait that long.
During non-business hours, BP’s spokesperson failed to provide a response to multiple attempts to contact them via telephone calls and a text message, seeking their comment.
The Yakaar-Teranga project, situated off the coast of Senegal, possesses a substantial reserve of approximately 25 trillion cubic feet of gas.
In order to proceed with the production phase, Senegal is currently seeking a third partner who would acquire a 34% stake in the project.