(Kosmos, 6.Nov.2023) — Kosmos Energy Ltd. (NYSE/LSE: KOS) has increased its working interest to 90% and assumed operatorship, subject to customary government approvals, of the world-scale Yakaar-Teranga gas discoveries offshore Senegal. The increase in working interest follows BP‘s exit from the field.
Yakaar-Teranga is one of the world’s largest gas discoveries in recent years and holds around 25 trillion cubic feet (Tcf) of advantaged gas in place, with negligible carbon dioxide content and minimal impurities, reducing the need for processing ahead of transportation/liquefaction.
Kosmos has been working closely with Petrosen and the Government of Senegal on an innovative development concept that prioritizes cost-competitive gas to the rapidly growing domestic market, combined with an offshore liquefied natural gas (LNG) facility targeting exports into international markets.
The currently envisioned development concept is an offshore development producing approximately 550 million standard cubic feet of gas per day with domestic gas transported via pipeline to shore and export volumes liquified on a floating LNG vessel. The concept is now being optimized to best meet the domestic and international requirements, after which the project will move into front-end design and engineering (FEED).
As concept optimization progresses, our aim is for Petrosen to participate as an equal partner in the full value chain with a greater working interest. Kosmos and Petrosen plan to evaluate potential partnership strategies with the objective of creating an aligned partnership possessing the necessary upstream and midstream expertise, coupled with access to cost effective financing and exposure to end markets.
Kosmos Energy’s Chairman and Chief Executive Officer Andrew G. Inglis said: “Increasing our working interest and assuming operatorship of Yakaar-Teranga is a major value creation opportunity for Kosmos. Yakaar-Teranga is one of the crown jewels of Senegal’s growing energy sector and this aligned partnership allows Kosmos and Petrosen to accelerate the development of a cost-competitive gas project supporting Senegal’s goal of providing universal and reliable access to low-cost energy. The project is also expected to lower emissions by displacing heavy fuel oil in the country’s energy mix. In addition, the project is expected to deliver LNG export volumes to global markets, further establishing Senegal as an important and reliable supplier of energy to the world. I would like to thank Petrosen for their support to progress this opportunity. Kosmos looks forward to delivering a project that is aligned with the country’s strategic development plan, `Plan Sénégal Emergent,’ to drive social progress and inclusive economic growth in Senegal for many years to come.”
Petrosen’s Director General, Upstream, Thierno Seydou Ly said: “We are pleased to work with Kosmos who has brought a new approach to the development of Yakaar-Teranga, as well as fresh thinking on how Petrosen can participate as an equal partner. Yakaar-Teranga is a strategic project and a key asset for the government’s `Gas-To-Power’ and `Gas-To-Industry’ initiatives, which aim to provide affordable, abundant, and cleaner energy as part of the country’s `Plan Sénégal Emergent.’ With a simplified and aligned partnership, we look forward to advancing the project, increasing Petrosen’s expertise through knowledge and skills transfer, and providing economic, social, and environmental benefits to the people of Senegal.”
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