Senegal has officially joined the ranks of oil-producing nations with the commencement of oil production at the Sangomar field, operated by Australian energy giant Woodside Energy.
"This is an historic day for Senegal and for Woodside," said Woodside CEO Meg O'Neill in a statement. "First oil from the Sangomar field is a key milestone and reflects delivery against our strategy."
The Sangomar field, discovered a decade ago, is expected to produce approximately 100,000 barrels of oil per day. The project, which involved the installation of a floating production storage and offloading (FPSO) vessel in February, has a total cost estimated between $4.9 and $5.2 billion.
Woodside highlighted that 21 out of 23 wells have been drilled and completed, including nine production wells, with drilling activities ongoing. Production is expected to ramp up steadily throughout 2024.
Sangomar crude, characterized by its high quality with an API gravity of 31 degrees and 1% sulfur, is comparable to oil from Oman and Norway's Johan Sverdrup field. Woodside anticipates strong demand for its product, primarily from refineries in Europe and Asia, with initial cargoes already sold to European markets.
Woodside holds an 82% stake in the project, with the remaining 18% belonging to Senegal's national oil company, Petrosen.
"First oil from the Sangomar field marks a new era not only for our country's industry and economy, but most importantly for our people," Thierno Ly, Petrosen's general manager for exploration and production, said in the statement.
It is worth noting that Senegal's newly elected President, Bassirou Diomaye Faye, has announced plans to audit the nation's oil, gas, and mining sectors and renegotiate contracts with foreign operators.