Hydrocarbon-Rich Nation

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Senegal launched its emergence plan (PSE) in 2014, aiming to develop its economy and
provide, among other objectives, universal electricity access to its citizens. The same year,
the SNE (later renamed Sangomar) and Grand Tortue Ahmeyim offshore oil and gas fields
shined a light on Senegal, attracting global attention to its hydrocarbon-rich waters. Today,
Senegal is preparing to become a major oil and gas producer on the African continent.

Sangomar (former SNE) Field

In 2014, a joint venture comprised of four companies announced the discovery of the oil-rich
Sangomar field. Partners Cairn Energy, Far Limited, ConocoPhilips and Petrosen announced
two major discoveries in the offshore FAN and SNE fields, within the Sangomar Profond
portion of the Rufisque, Sangomar and Sangomar Profond fields, offshore Dakar. The SNE
discovery – the various wells of which establish an area of ​​more than 400 km 2 – was the most
significant oil discovery worldwide in 2014. The project is currently being developed in
several phases with a target production estimated at around 500 million barrels and daily
production of 100,000 barrels. Initial plans scheduled first production for 2022, however,
COVID-19 has pushed the projection back to 2023.

At present, the joint venture is made up of Cairn Energy (40%), Woodside Energy (35%),
which also serves as project operator, FAR Ltd (15%), and Petrosen (10%). The development
concept includes the commissioning of a Floating Production, Storage and Offloading vessel
as well as underwater infrastructure. The final investment decision for Sangomar was taken
by operating partners in January 2020.
Two additional discoveries were announced in 2017, in the FAN South-1 and SNE North
wells, in the same field as the 2014 discoveries. The field was renamed Sangomar in
November 2019.

Grand Tortue Ahmeyim Field

Kosmos Energy announced the discovery of a large gas reserve in the Grand Tortue
Ahmeyim (GTA) field straddling the Senegal-Mauritanian border in 2015. During the
following years, many wells were drilled and new discoveries were announced in the same
area: Marsouin, Teranga, Tortue-1 and Guembeul, among others. In 2019, several gas
discoveries were made in the same field, confirming the immense gas potential of the
region. British supermajor BP signed its entry into the project in 2017 with the acquisition of
a 33% stake in the Senegal side and 62% in the Mauritania side. Following a new buyout of
interests on the Senegal side of the asset in 2017, the capital structures are similar on each
side of the border: BP holds around 60% of the shares, Kosmos Energy holds around 30%
and national oil companies (Senegal’s PETROSEN and Mauritania’s Société d’Hydrocarbures et du Patrimoine Minier) hold 10% respectively.

Operator experts estimate gas reserves at around 15 trillion cubic feet, with the most
ambitious scenarios suggesting potential reserves of up to 100 trillion cubic feet. These
discoveries place Senegal close to the top of the list of African countries with the largest
proven oil reserves.

GTA Project

BP’s initial goal was to complete the GTA LNG project in just six years, with first productions
in 2022. Although the target year remains the same, the COVID-19 pandemic has delayed
the project by a few weeks to a few months, depending on the outcome of the crisis. BP Gas
Marketing, a subsidiary of the BP group, was designated as the purchaser of the gas
produced by the field. BP then signed an agreement with Golar LNG for the use of the Gimi
LNG tanker for a period of 20 years. The Gimi tanker will be transformed into a floating unit
of liquefied natural gas by Singapore-based offshore services company Keppel. The cost of
this transformation is estimated at around $ 1.3 billion. The subsea production system will
be led by Baker Hugues, a GE Company, while TechnipFMC will be responsible for the
engineering work.

Senegal’s outstanding petroleum reserves constitute an added lever for the government to
move towards economic emergence. Thanks to a strong presidential drive and clear
economic framework, the country is prepared to efficiently reap the benefits from upcoming
oil and gas production.

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