This momentous occasion marks a new era for the West African country.
Woodside, the project operator with a controlling stake, aims to produce a significant 100,000 barrels of oil per day from Sangomar. This initial extraction signifies a successful kick-off for Phase 1 of the development plan.
Meg O’Neill, Woodside’s CEO, emphasized the safe execution of the project despite global challenges. The first phase utilizes a self-contained FPSO (Floating, Production, Storage and Offloading) facility strategically positioned for future expansion.
O’Neill expressed confidence that the Sangomar project will generate substantial value for stakeholders, adhering to the terms of the production-sharing agreement. The project is a joint venture between Woodside (82%) and Senegal’s national oil company, Petrosen (18%).
Thierno Ly, Managing Director of Petrosen, hailed the project’s significance for Senegal’s industry, economy, and people. He highlighted the dedication of teams involved and emphasized the potential for growth, innovation, and development in the country.
Phase 1 of Sangomar development involves 23 wells, including production, water injection, and gas injection wells. The FPSO, named after Senegal’s first president, Leopold Sedar Senghor, boasts a storage capacity of 1.3 million barrels and is moored about 100 kilometers offshore.
While drilling continues, Woodside plans for ongoing commissioning activities and a safe production ramp-up in 2024. The extracted crude oil is expected to be around 31 degrees API, aligning with the demands of European and Asian markets.
Woodside’s acquisition of interests in the project included contingent payments based on production and oil prices. With the current production schedule, both payments are expected to be fulfilled.
Senegal’s oil production marks a turning point for the nation, holding the potential for economic growth and development. Collaboration between Woodside and Petrosen is crucial for ensuring the project’s success and maximizing benefits for Senegal.
ODL/te/fss/abj/APA