Senegal secures major gas field following Kosmos Energy exit

Senegal has moved to consolidate control over one of its most significant natural gas discoveries, assuming full ownership of the Yakaar-Teranga project following the withdrawal of Kosmos Energy in a deal that signals a shift toward stronger state participation in the upstream sector.

Prime Minister Ousmane Sonko said the agreement allows the government to take over development of the offshore asset without financial compensation to the U.S.-based firm. The project remains central to Senegal’s long-term hydrocarbons strategy, alongside the Sangomar oil field and the Greater Tortue Ahmeyim LNG development.

A strategic deepwater gas resource

Located in the Cayar Offshore Profond block north of Dakar, Yakaar-Teranga is among Senegal’s most promising deepwater gas assets, with estimated recoverable resources of about 25 trillion cubic feet. The field is widely viewed as a cornerstone for meeting domestic gas demand while supporting future LNG export capacity.

Under the new arrangement, the exploration licence will be transferred exclusively to state-owned PETROSEN through a ministerial order. This move gives PETROSEN full authority over development timelines, capital allocation, and commercialization strategy.

Policy shift toward greater state control

The licence was originally structured to run until July 2026, when PETROSEN was expected to assume control if no alternative development framework emerged. The early transfer effectively accelerates that transition and underscores a more assertive resource governance approach.

Energy Minister Birame Souleye Diop said the government intends to nationalize the project to better align output with domestic energy needs, reflecting a broader policy tilt toward state-led development of strategic assets.

Kosmos Energy steps back

Kosmos Energy confirmed its exit from the project under mutually agreed terms, relinquishing its 90% operating stake without compensation. The withdrawal marks a significant recalibration of its West African portfolio.

Kosmos Energy is a Dallas-based independent oil and gas exploration and production company focused on the Atlantic Margin, with key producing assets offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico. Founded in 2003, the company specializes in deepwater exploration and development, including major LNG projects spanning Mauritania and Senegal.

Senegal’s move positions PETROSEN at the center of one of the region’s largest gas developments, potentially accelerating domestic gas-to-power initiatives. The challenge will be balancing increased state control with the capital and technical expertise required to unlock complex deepwater resources.