In a sweeping assertion of resource sovereignty, Senegal’s government has finalised an agreement for the complete withdrawal of US-based Kosmos Energy from the Yakaar-Teranga Gas Project — one of West Africa’s largest deepwater gas discoveries, holding an estimated 25 trillion cubic feet of recoverable reserves. The exit hands full control of the project to the state-owned oil company PETROSEN, which will assume the exploration licence through a ministerial order.
Prime Minister Ousmane Sonko confirmed that the agreement allows Senegal to take over the development at zero financial compensation to Kosmos Energy. The American firm, which previously held a 90 percent operating stake in the Cayar Offshore Profond Block, had signalled its potential departure if commercially viable development plans or appropriate partnership structures could not be secured.
Energy Minister Birame Souleye Diop made clear that the state intends to prioritise domestic gas supply and long-term economic development under national management. With PETROSEN now in the driving seat, Senegal gains full authority over development timelines, financing strategies, and monetisation plans for a project that is central to the country’s industrialisation ambitions, domestic energy supply, and liquefied natural gas export goals.
The Yakaar-Teranga field sits alongside the Sangomar Oil Field and the Greater Tortue Ahmeyim LNG Project as a cornerstone of Senegal’s emerging upstream energy sector. Officials have been emphatic, however, that the move is not nationalisation but a structured transition in line with existing contractual provisions, with the licence due to transfer to PETROSEN upon its scheduled expiry in July 2026.
Analysts caution that while the shift strengthens resource sovereignty, it substantially raises the stakes for government institutions, which must now independently mobilise financing, technical expertise, and operational capacity to transform a major offshore gas resource into sustained production and economic value.
Source: angolanminingoilandgas.com