Petroleum products and crude oil are Senegal’s top imports, currently at an annual cost of approximately $1bn. In recent years, Senegal has been moving closer to become a large-scale oil and gas producer following the successful exploration and appraisal activities of SNE and FAN fields.
The SNE field is a phased deepwater conventional oil development located in the Sangomar Deep Block, 100km south of Dakar. It was discovered by the Cairn Energy led joint venture as the world’s largest oil discovery in 2014.
The development of the three-phase SNE field is expected to generate approximately $16bn in undiscounted fiscal take for the government. Furthermore, the recent addition of SNE’s natural gas reserves to the development plan, along with the announced Tortue gas project, are forecast to supply nearly 500 million cubic feet to the domestic gas market by 2030.
Senegal domestic natural gas production and total government fiscal take from SNE Field
|Source: GlobalData Oil and Gas © GlobalData|
The joint venture submitted the development and exploitation plan in October 2018, including a stand-alone floating production storage and offloading vessel and subsea infrastructure designed to allow future tiebacks. Woodside has recently taken over as development lead and it is expected to reach the final investment decision in H2 2019.
The field development of SNE requires a total investment of $5.83bn for three phases. The three phases of SNE field have established the potential to recover approximately 460 million barrels of crude oil reserves and 1 billion cubic feet of natural gas reserves.
Unlocking SNE’s reserves will not only provide the first crude oil production for Senegal but also form a base for developing other discoveries, FAN, FAN South and SNE North, in the Sangomar Deep Block, promoting Senegal to West Africa’s new oil economy. The government of Ghana is reported to share its experience in the effective management of hydrocarbon resources, which has been gained since the discovery of the Jubilee field in 2007.