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Kosmos Energy Seeks Equal Partnership for Yakaar-Terenga Project, Highlights from MSGBC Conference

Global energy major Kosmos Energy announced during the MSGBC Oil, Gas&Power 2023 conference this week that the company is seeking an equal partnership structure for the Yakaar-Teranga natural gas project.

Having recently taken over as operator from bp, the company shared in a panel discussion titled, The Balancing Act: Hydrocarbons and the Energy Transition, that it is committed to working with Mauritania to unlock the full benefits of the project for the local economy.

The announcement was made by Khady Ndiaye, Vice President&Senegal Country Manager, Kosmos Energy. She stated, “For Yakaar-Teranga, we are thinking about a partnership whereby all partners have equal participation in the project, with Petrosen being the party with the highest shares. The idea is to promote the new part of partnership where the National Oil Company (NOC) will be able to showcase its capabilities and develop new skills.”

The panel discussion also included talks on how the monetization of oil and gas resources can strengthen the region’s capacity to transition to a cleaner energy future. Speakers emphasized the region’s desire to industrialize and develop, promoting various projects that promise new opportunities for universal access and economic growth.

In regard to The Gambia, Cany Jobe, Director of Exploration and Production at the Gambia National Petroleum Corporation, explained that the country is “doing all we can both above and below ground to make exploration more effective in The Gambia. We have tweaked our fiscal terms to implement a sliding scale royalty and reverted back to a direct negotiation strategy in hopes of encouraging investors and partners to come to the table.”

Similarly, Guinea-Conakry has implemented measures to attract investment. The country established the NOC, SONAP, in 2021 and is looking for partners to conduct exploration.

Dr. Mohamed Bangoura, National Director of Hydrocarbons, Ministry of Energy, Hydraulics, and Hydrocarbons, Guinea-Conakry, stated, “The transitional government aims to highlight all natural resources, leading to the creation of the NOC, SONAP. We have acquired 2D and 3D data technologies. With these advancements and investments, we may catch up with the delay [in exploration] in two to three years.”

With the discovery of major oil and gas deposits in the offshore MSGBC waters, countries like Mauritania and Senegal are initiating significant projects to develop and monetize resources. The 2.3 million-ton-per-annum Greater Tortue Ahemyim project and the 100,000 barrel-per-day Sangomar oilfield development are set for first production in 2024, with a strong slate of other projects gradually progressing. One of the most anticipated of these is the BirAllah development in Mauritania, which targets gas for domestic utilization.

Moustapha Bechir, General Director of Hydrocarbons at Mauritania’s Ministry of Petroleum, Mines and Energy, explained that the country “is in the process of preparing for Final Investment Destination [for BirAllah] and plans to produce gas by 2030.” He added that the Ministry is engaging with the Joint Venture partners on “how we can meet this target and design the project for the domestic market and domestic needs, and ensure that we can make this project compete in the current market.”

Though the region is preparing for an abundant supply of domestic oil and gas, climate change is causing growing concerns, emphasizing the need to implement low-carbon solutions. Therefore, focus has shifted towards decarbonization as first production nears. Countries are adopting strategies to facilitate a transition while prioritizing the needs of the population.

Papa Samba Ba, Director of Hydrocarbons, Ministry of Petroleum and Energies, Senegal, remarked that, “Our country has developed a balanced transition strategy, leveraging extractive resources, complemented by an increase in our renewable resources. This enables us to address various challenges and be present at the forefront of these issues.”

The MSGBC 2023 conference and exhibition is taking place in the Islamic Republic of Mauritania’s capital city of Nouakchott on 21-22 November. The event is held under the theme, ‘Scaling Energy Opportunities in Africa’s New Frontier’, and is under the patronage of H.E. Mohamed Ould Cheik Ghazouani, President of the Islamic Republic of Mauritania, and in partnership with the Ministry of Petroleum, Mines and Energy; the Société Mauritanienne des Hydrocarbures (SMH); Petrosen; COS Petrogaz; and the African Energy Chamber.

Distributed by APO Group on behalf of Energy Capital&Power.

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