(Bloomberg) – bp Plc is in talks to exit Senegal’s Yakaar-Teranga natural gas field, which would leave operatorship of the resource to Kosmos Energy Ltd. and increase the stake held by the state, according to people familiar with the discussions.
The natural gas field has been outlined as a source of fuel for Senegal’s gas-to-power projects that would help increase electrification in the West African nation and reduce fuel prices. There is also the potential for exports within the region.
Yakaar-Teranga, which includes discoveries first made in 2016, no longer fits into bp’s strategy, resulting in discussions to leave the asset, said the people, who asked not to be identified because the information is not public. Petrosen, Senegal’s state-owned oil company, could increase its share in the project through the renegotiation, one of the people said.
African nations have pointed to the need for solutions to end energy poverty, with 600 million people on the continent lacking access to electricity. Europe is also increasingly seeking gas from the continent to replace Russian supply.
Senegal’s Ministry of Oil and Energy didn’t immediately respond to a request for comment. Representatives for Kosmos didn’t immediately respond to a request for comment. bp declined to comment.
The two companies’ larger Greater Tortue Ahmeyim natural gas development, which straddles the maritime border of Senegal and Mauritania, is expected to reach commercial production next year.
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