Ministère Sénégal: Démenti ENI Yakaar-Teranga Claims, Clarifies Protocol

• Senegal's Ministry of Energy and Petroleum denied social media claims linking ENI to the strategic Yakaar-Teranga gas fields.
• The protocol with ENI only permits self-funded preliminary studies on five specific offshore blocks, none of which include Yakaar-Teranga (SN08M).
• This agreement is not a petroleum contract and confers no exploration, exploitation, or automatic future rights to ENI.
• Yakaar-Teranga is a strategic asset, facing production delays to 2030-2032 following Kosmos Energy's withdrawal and a potential loss of $5-7 billion in investments.
• An expert views Kosmos's withdrawal positively, citing improved geological knowledge from prior exploration efforts.

The official statement clarified that the ENI protocole d'accord Sénégal is strictly limited to the evaluation of the oil and gas potential within five specific offshore blocks: SN01M, SN02M, SN03M, SN07M, and SN40M.

The Ministère de l'Énergie, du Pétrole et des Mines has issued a strong rebuttal to circulating social media claims that falsely link the strategic Yakaar-Teranga gas fields to an agreement with the Italian energy company ENI. The ministry explicitly contested a map widely shared online, which purported to show Yakaar-Teranga as part of a deal with ENI, labeling the assertions as a twofold falsehood.

The official statement clarified that the ENI protocole d'accord Sénégal is strictly limited to the evaluation of the oil and gas potential within five specific offshore blocks: SN01M, SN02M, SN03M, SN07M, and SN40M. Crucially, the Yakaar and Teranga discoveries, which are grouped within block SN08M, are not included in this list of blocks. The ministry identified the disseminated map as an outdated working document that is factually incorrect regarding the scope of the agreement.

The Senegalese government further underscored that the agreement with ENI does not constitute a petroleum contract and does not, under any circumstances, attribute any exploration or exploitation blocks. Instead, the protocol solely authorizes ENI to independently finance preliminary geological and geophysical studies within the designated five blocks. This arrangement does not confer upon ENI any title for exploration or exploitation, nor does it grant any rights over the resources discovered within those areas.

The ministry emphasized that the document provides no automatic future rights to ENI beyond the preliminary study phase. This clarification directly addresses and refutes any suggestions of a "pretended sell-off" of national resources, asserting that such claims are based on a fundamental misunderstanding of the agreement's terms and the legal framework governing droit pétrolier et gazier Sénégal.

The Yakaar-Teranga gas project remains a highly strategic asset for Senegal, a context that amplifies the sensitivity around any misinformation regarding its future. This critical project has recently faced significant challenges, notably the Kosmos Energy retrait Sénégal, which saw the company withdraw from its planned development with BP. This disengagement is projected to deprive Senegal of an estimated $5 billion to $7 billion in anticipated investments.

Furthermore, the $144 million that Kosmos Energy invested in drilling activities during 2016 and 2017 has since been depreciated, leaving behind plugged wells. The absence of an operator has led to a significant delay in bringing the Yakaar-Teranga exploration offshore fields into production, pushing the initial target date of 2027 back to between 2030 and 2032.

Despite the financial setbacks and delays, the withdrawal of Kosmos Energy is not universally viewed as a negative development. Abdou Gueye, an expert in extractive industries, has characterized the move as "very good news for Senegal." According to Gueye, the extensive exploration work conducted since 2017 has significantly enhanced understanding of the reserves and effectively reduced the geological risk associated with the project.

In this evolving landscape, the Ministère de l'Énergie, du Pétrole et des Mines maintains that the opening of other blocs pétroliers, such as SN01M, for preliminary studies cannot be equated with the attribution of rights over the Yakaar-Teranga fields in block SN08M. The ministry's stance reinforces the clear distinction between preliminary evaluations and definitive contractual rights within Senegal's oil and gas sector.

Lawyers and compliance officers advising clients in the Senegalese oil and gas sector should note this official clarification regarding the scope of preliminary agreements. It underscores that specific protocols, like the one with ENI, do not automatically confer exploration or exploitation rights, particularly for strategic assets like Yakaar-Teranga, and highlights the importance of verifying official statements over circulating rumors regarding block allocations and contractual rights.

Source: Original reporting via Pressafrik