Senegal Begins Oil Extraction from Offshore Sangomar Field

After years of delays, Woodside has commenced oil extraction from the Sangomar offshore field, located approximately 100 kilometers south of Dakar. The floating production facility boasts a storage capacity of 1.3 million barrels and operates at a depth of 780 meters. It is projected to produce between 100,000 and 125,000 barrels per day.

The initial development phase of the Sangomar field, which includes new exploratory drilling, is expected to cost between $4.9 and $5.2 billion. Woodside holds an 82% stake in the deepwater project, with the remaining shares owned by Senegal’s state energy company Petrosen.

Thierno Ly, managing director of Petrosen, emphasized that the start of extraction at Sangomar heralds a new era for Senegal’s industry and economy, presenting unprecedented opportunities for growth, innovation, and social development.

The oil extracted from Sangomar meets European and Asian market standards and is destined for both export and the domestic market. Thiemele, an oil sector expert, anticipates that Senegal could eventually reach production levels exceeding 200,000 barrels per day, comparable to nations like the Democratic Republic of the Congo and Gabon.

While Senegal’s fossil fuel production will not match that of larger producers like Nigeria, there are optimistic projections that the oil and gas sector will generate billions of dollars in revenue and significantly boost the country’s economy. Charles Thiemele, Africa director of trading company BNG, noted that the start of oil production is a milestone for Senegal, potentially alleviating the nation’s energy bill, which has been a substantial budgetary challenge.

The discovery of the oil and gas fields in 2014 sparked significant economic hopes for Senegal, one of the world’s 25 least-developed countries. However, the exploitation of Sangomar has faced numerous delays. Originally slated for 2021, the project was postponed due to strategic adjustments and financial difficulties faced by the Australian company FAR, whose shares were ultimately acquired by Woodside.

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