Senegal has authorized Woodside Energy to develop its first offshore oil project, Sangomar reportedly worth $6 billion. The project, which is expected to have a production capacity of 100,000 barrels per day with first oil targeted for early 2023, will be a joint venture (JV) between Woodside Energy, Cairn Energy PLC, Far Ltd and Senegal state-owned Petrosen.
Commencement of the first phase of the Sangomar project will be subject to the final execution of Host Government Agreement and awards of key contracts by the Senegalese government. The government also approved a draft oil management plan for three offshore JV projects –Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore – Woodside said on Thursday.
The project’s JV partners – Woodside, Far Limited, Capricorn Senegal Limited and Senegal-owned state-owned Petrosen – are keen to push the project ahead. Project funding was delayed due to an arbitration requested by FAR Limited, which holds a 15% interest in the project.
The first Senegal Oil & Power 2020 conference will be held on May 27-28, 2020 in Dakar, Senegal. The conference will be a vehicle to promote the new deep water licensing round, which was announced at the Africa Oil & Power Conference in Cape Town and for public-private partnerships spanning the value chain.