Senegal plans to start construction of a second oil refinery next year to boost domestic processing capacity, seeking $2 billion to $5 billion in investment for the scheme. Mamadou Abib Diop, CEO of national refining company SAR, announced that the country has received financing offers from potential investors including China, Turkey, and South Korea.
Feedstock for the new plant, dubbed SAR 2.0, would come mainly from Senegal’s offshore Sangomar oil and gas field, operated by Woodside Energy with national oil company Petrosen as a minority shareholder. The field started producing last year with annual output of 34.5 million barrels, or approximately 4.6 million tons.
SAR, West Africa’s oldest refinery, currently processes 1.5 million tons of crude oil per year or around 30,000 barrels per day but faces a domestic shortfall. The new refinery site will add 4 million tons of processing capacity per year. By a targeted 2029 production startup date, SAR aims to achieve self-sufficiency in domestic supply of petroleum products and potentially export to elsewhere in the region.
There is no final decision yet on where the new refinery will be located or whether the government will take an equity share in its development. Abib Diop noted that numerous investors are expressing interest in financing the project.
Sources: cnbcafrica.com, hydrocarbonprocessing.com, bairdmaritime.com