By Brian Okoth
Senegal has officially joined the list of oil-producing countries in Africa.
Australian petroleum company Woodside Energy announced on Tuesday, June 11 that it had begun drilling oil in the West African nation.
The oil is being extracted at the Sangomar oilfield, some 100 kilometres south of the capital Dakar.
Although Senegal's fossil fuel output is not expected to be as high as major oil producers in Africa such as Libya, Nigeria and Angola, there are hopes that Senegal's oil and gas will generate billions of US dollars in revenue.
'Historic day'
Woodside Energy's chief executive officer Meg O'Neill described the inaugural extraction as a "historic day for Senegal."
Woodside had started exploring oil at the Sangomar field in early 2020, though oil was first discovered at the site in November 2014.
Sangomar is an offshore oilfield, also known as deepwater field.
Deepwater oil extraction is the process of drilling into the ocean floor to access oil and natural gas that lie beneath. The depth of the water has to be at least 1,000 feet, an equivalent of 305 metres.
Daily output
Senegal's deepwater project aims to produce about 100,000 barrels per day.
Nigeria's production is at least 1.5 million barrels daily, while Angola's output is approximately 1.1 million.
Libya's output is 1.1 million, and Algeria's production is 1.7 million.
In the oil industry, one barrel is equivalent to 159 litres of oil.
Revenue projection
The storage facility in Senegal's Sangomar oilfield can accommodate up to 1.3 million barrels, an equivalent of 207 million litres.
Woodside Energy has an 82% stake in Senegal's deepwater project, while the state-owned energy company Petrosen holds the remaining shares.
Petrosen predicts that over the next three decades, the oil project would generate more than 1 billion US dollars in revenue every year.
There are 23 wells at the Sangomar field, with 21 already drilled. In the oil industry, a well refers to a borehole dug in the earth to bring oil or natural gas to the surface.
Natural gas
The cost of the oil extraction project at Sangomar is estimated to be between 4.9 billion and 5.2 billion US dollars. The crude oil output will be for export purpose.
In phase two of extraction, a joint venture by British, American, Mauritanian and Senegalese companies targets to process over 500 million cubic feet of natural gas daily.
The natural gas project is located near Senegal's city of Saint Louis, on the border with Mauritania.
Natural gas production is expected to start in the third or fourth quarter of 2024.
Protection from 'exploitation'
Energy sector players have urged Senegal to strengthen legislation, draw strong contracts, and promote an enabling environment for oil explorers.
In April this year, Senegal's President Bassirou Diomaye Faye ordered a comprehensive audit of the mining, oil and gas sectors, promising to protect Senegal against "exploitation."
For now, the country's population of 18 million people can hope that the oil and gas resources would spur economic growth.
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