(Bloomberg) -- Senegal expects the first cargo from BP Plc’s Greater Tortue Ahmeyim liquefied natural gas project at the “beginning of next year,” according to Deputy Energy Minister Cheikh Niane.
The project — shared with neighboring Mauritania — is still “on track” and the first gas extraction is expected this year, Niane said on the sidelines of the Adipec conference in Abu Dhabi.
Opening the taps on the $4.8 billion Grand Tortue Ahmeyim LNG project and Sangomar oil development, following numerous delays, will set up the the West African country to become one of the world’s fastest-growing economies. President Bassirou Diomaye Faye, who won a landslide victory in March polls, has also vowed to review all oil and gas contracts to potentially get better terms for Senegal.
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Faye has launched an audit of contracts awarded by the previous government to companies including BP, Woodside Energy Group Ltd. and Kosmos Energy Ltd. The president needs to bolster the West African nation’s finances after a separate audit showed the deficit was significantly higher than previously reported.
Senegal wants to ensure that it’s getting “the best deal possible,” Niane said. That could, for example, include boosting the state oil company’s share of contracts from 10% to 20%, or even more, he said, adding that the review should be completed some time next year.
The non-profit Natural Resource Governance Institute warned in a recent report that it’s a “tricky” time to consider renegotiations, as several project were starting production.
“An opaque process could damage relations with partners, discourage future investments, and undermine citizens’ trust in the governance of their natural resources,” it said.
A final investment decision is expected by next year for Yakaar-Teranga, which is solely owned by Senegal, according to the deputy minister. While Kosmos is working on finding a partner after BP’s exit last year, the government is also approaching other countries, including in the Middle East, Niane said, without disclosing further details.
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