An LNG transport ship called KARMOL LNGT Powership Africa is seen offshore as Chancellor Scholz visits Dakar, Senegal May 22, 2022.
The offshore field, estimated to contain around 25 trillion cubic feet of recoverable gas, is currently operated by U.S.-based Kosmos Energy, which holds a 90% interest. State-owned Petrosen owns the remaining 10%. Kosmos assumed operatorship in 2023 after BP exited the project. The existing licence is set to expire in July 2026.
Speaking at a conference in Diamniadio, Minister Diop outlined the government's plans: "It's a project we have operators for, and we want to nationalise 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."
Following the minister's remarks, Kosmos Energy shares declined on Wednesday in New York trading, dropping 6.1% by 1637 GMT and reaching their lowest level in five years.
Kosmos issued a statement reaffirming its ongoing efforts: "Since discovering natural gas at Yakaar-Teranga in 2017 and following BP's departure from the licence 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 licence expires in July 2026."
No final investment decision for the field has been announced publicly, although Petrosen indicated last year that such a decision was anticipated during 2025.
The Yakaar-Teranga reserves exceed those of the Leviathan field offshore Israel, which holds approximately 22 trillion cubic feet of recoverable gas. Both Kosmos and Petrosen also participate in the separate Greater Tortue Ahmeyim liquefied natural gas project located offshore Senegal and Mauritania. That project, containing an estimated 15 trillion cubic feet of recoverable gas, loaded its first cargo in April this year.
The proposed nationalization applies solely to the development and operation of the Yakaar-Teranga field and does not affect existing production or exports from other projects. The government's stated objective is to secure domestic energy supply while retaining flexibility for potential future gas exports once local needs are met.
