Senegal retracts minister's comments on nationalisation of gas fields as the end of licence nears

The Senegal energy ministry retracted its previous statement on Thursday that it intended to nationalise Yakaar Teranga, a U.S.-owned gas field. Both parties indicated the licence would be handed back to the state in July next year. Birame Souleye Diop, Senegal’s Energy Minister, said Tuesday that the government wants to nationalize Yakaar Teranga. State-run Petrosen owns the remaining 10%. Both companies are looking for a third partner to enter the project and progress a plan of development. However, no breakthrough has yet been made.

Kosmos will take over the Yakaar Teranga field from BP in 2023, after BP decides to leave. The company's licence for the field expires in July 2026.

"Kosmos Energy worked with Petrosen hard to find a partner suitable and agree on a commercially feasible development concept for the area. Kosmos Energy will work with Petrosen, in the absence of a partner, to transfer the license back to the Senegalese government on or before the expiration date in July 2026.

Senegal’s energy ministry posted a message on social media on Thursday saying that the country’s strategy “did not imply any nationalisation of the Yakaar-Teranga Project” and Kosmos was still a strategic partner.

The ministry stated that it would work closely with Kosmos, Petrosen and Senegalese authorities to transfer the license to the Senegalese government by July 2026.

Diop said on Tuesday that Yakaar Teranga was a project for which we had operators. We want to nationalise the project and give Petrosen the chance to develop it, as they have the expertise. (Reporting from Vallari Srivastava, Anait Mirizhanian, and Shadia Nasralla in Bengaluru. Editing by Louise Heavens and Kirby Donovan.

(source: Reuters)