The Africa Oil Week 2023 will feature an impressive lineup of Ministers and officials from MSGBC Basin countries, including Mauritania, Senegal, The Gambia, Guinea-Bissau, and the Republic of Guinea. This year’s edition will offer a unique Regional Spotlight on the region as mega oil and LNG projects near commissioning and exploration wells are due to be drilled in 2023 and 2024. 

The MSGBC Regional Spotlight will welcome:
-    H.E. Aissatou Sophie Gladima Siby, Minister of Petroleum & Energy, Republic of Senegal 
-    H.E. Abdoulie Jobe, Minister of Petroleum and Energy, Republic of The Gambia
-    H.E. Dionisio Cabi, Minister of Natural Resources and Energy, Republic of Guinea-Bissau    
-    H.E. Moustapha Béchir, Director General of Hydrocarbons, Islamic Republic of Mauritania
-    Mr. Amadou Doumbouya, Director General, Société Nationale des Petroles, Republic of Guinea

A True African Hotspot 

The MSGBC Basin made headlines for most of the 2010s as several significant oil and gas discoveries were announced between 2014 and 2018. Cairn Energy discovered the Sangomar field offshore Senegal via a series of wells drilled between 2014 and 2017, while Kosmos Energy discovered the giant gas field straddling the maritime border between Senegal and Mauritania between 2015 and 2018. 

Over the years, several other operators farmed in and joined the race. As of 2023, Woodside Energy is leading the development of the Sangomar Offshore Oil Project that will produce some 100,000 barrels of oil per day (bopd) at peak. On the other side, bp has taken the lead on the development of the 2.3 mtpa Greater Tortue Ahemyim (GTA) LNG hub between Mauritania and Senegal, in partnership with Kosmos Energy. The major is about to embark on the second phase of the GTA hub, which could add up to 3 mtpa of LNG capacity this decade. 

Both projects represent billions of dollars of investment and are currently nearing commissioning despite delays engendered by the COVID-19 pandemic and subsequent market volatility. 

Meanwhile, these mega energy ventures have also opened new opportunities for domestic markets, both in terms of capacity building and local monetization of resources. The growth of local content has notably become a priority to ensure investments trickly down into local value chains and services that can maximise jobs and domestic value creation. 

A Gas Frontier

The role of natural gas is set to grow across several MSGBC countries over the coming years. Both Mauritania and Senegal have made sure of the gas developed for exports is reserved for their local markets. Domestic supply will first and foremost help decarbonize the power sector, where several power stations still run on imported and polluting heavy fuel oil (HFO) and diesel, but also to produce fertilizers for farmers. 

Beyond domestic allocations coming from the GTA LNG hub, several undeveloped gas discoveries could further support the growth of domestic industries and value-chains in the region. In Senegal, bp is progressing the Yakaar-Teranga gas project towards a final investment decision (FID), with gas expected to be allocated both to the domestic and export markets. In Mauritania, the BirAllah-Orca discoveries could support a similar scheme, with a new PSC signed over Block C8 in 2022 and a FID expected by 2025. 

The presence of large industries, especially mining, is also driving the demand for energy and for gas in particular. Private investors are currently proposing an LNG receiving terminal in the Republic of Guinea to supply gas to the mining sector and support the local processing and transformation of the country’s mineral resources. 

Exploration is Back! 

Despite a disappointed exploratory drilling campaign by FAR offshore The Gambia at the end of 2021, exploration is also coming back to the region. Shell has contracted the Noble Voyager to drill a major exploration well offshore Mauritania by the end of 2023. Exploration will focus on the Panacotta-1NFW prospect in Block C-10, where QatarEnergy recently farmed in. 

In 2024, another exploration well will be drilled offshore Guinea-Bissau by Apus Energia, controlled by Petromal LLC. Drilling will focus on the Sinapa and Esperança licences where the Atum and Anchova prospects represent mean un-risked prospective resources of 467 million barrels. 

Both wells will be closely watched by the industry for their play-opening potential as successful results there could open up new frontiers in the MSGBC Basin and significantly transform the region’s energy landscape. 

 
Africa Oil Week is the meeting place of choice for the continent’s upstream oil and gas sector. Now entering its 29th year, the event brings together governments, national and international oil companies, independents, investors, the G&G community and service providers. Africa Oil Week takes place in the heart of Cape Town at the Cape Town International Convention Centre 2 (CTICC2) from 9-13 October 2023.