Senegal plans to nationalize the Yakaar-Teranga gas project, operated by Kosmos Energy and estimated to hold around 25 trillion cubic feet of recoverable gas—one of the world’s largest gas discoveries in recent years—with a view to meeting domestic gas needs, Energy Minister Birame Souleye Diop announced on Tuesday.
Kosmos Energy, which has a 90% stake, became the operator of the Yakaar-Teranga gas field in 2023 after BP decided to exit. The field is estimated to hold even more gas than the Leviathan field offshore Israel, which has around 22 trillion cubic feet of recoverable gas. Kosmos’ license for the field runs out in July 2026.
“It’s a project we have operators for, and we want to nationalize it and give Petrosen, which has the expertise, the opportunity to develop this project to meet domestic gas needs without ruling out the possibility of exporting,” Energy Minister Diop said. State-controlled company Petrosen holds the remaining 10% in the field.
Petrosen said last year it expected a final investment decision in 2025, though so far no decision has been made public. In response to the minister’s comments, Kosmos stated: “Since discovering natural gas at Yakaar-Teranga in 2017 and following BP’s departure from the license in 2023, Kosmos Energy has been working hard with Petrosen to find a suitable partner and agree a commercially viable development concept. The current Yakaar-Teranga license expires in July 2026.”
Kosmos shares fell on Wednesday in New York, hitting a five-year low, down 6.1% at 1637 GMT, reflecting investor concerns about the nationalization plan and its implications for the company’s West African portfolio.
The nationalization plan comes as Senegal pursues an integrated strategy for gas development, with multiple uses beyond export. Minister Diop outlined that “the integrated strategy sees the sector as a whole, from gas-to-power to gas-to-industry, but also applications in transport and agriculture.”
Kosmos and Petrosen, as well as BP, are also shareholders in the Greater Tortue Ahmeyim liquefied natural gas project offshore Senegal and Mauritania, which is estimated to hold 15 trillion cubic feet of potentially recoverable gas and which loaded its first cargo in April 2025.
Source: reuters.com