Senegal Eyes Full Ownership of Gas Project Requiring $7.5bn Investment

Prime Minister Ousmane Sonko announced the development on April 23, 2026, calling it “a major victory” for Senegal’s push for control over its own resources.

The Yakaar-Teranga field is located in the Cayar Offshore Profond block, north of Dakar. With an estimated 20 to 25 trillion cubic feet of recoverable gas, it is one of the largest deepwater gas finds in West Africa.

The licence now belongs fully to PETROSEN, Senegal’s state-owned oil company.

Politically, this announcement is a big win for Senegal. But from a business perspective, the situation is more complex.

Why Kosmos Energy Left

Kosmos Energy is not the first major partner to leave Yakaar-Teranga.

BP exited the project in 2023 after a disagreement with the Senegalese government. BP wanted to export the gas as LNG to global buyers. Senegal wanted to use the gas first for domestic power supply and industrial growth.

After BP’s exit, Kosmos became the main operator with a 90 per cent stake. However, the company lacked sufficient financial resources to develop such a large project on its own.

Kosmos spent two years looking for another partner, but was unsuccessful. In April 2026, the company returned the license. Now, PETROSEN owns the entire asset, but it is also fully responsible for developing it. it.

Why Yakaar-Teranga Matte Yakaar-Teranga stands out as one of the largest gas fields in West Africa.

With reserves estimated at 20 to 25 trillion cubic feet, this field could transform Senegal’s energy sector.

The field sits in the MSGBC basin, which stretches across Mauritania, Senegal, The Gambia, Guinea-Bissau and Guinea. This basin has become one of Africa’s most-watched hydrocarbon zones.

Senegal already has two major energy projects.

The Sangomar oil field began production in 2024. The Grand Tortue Ahmeyim LNG project, shared with Mauritania, started gas production in December 2024 and exported its first LNG cargo in April 2025.

Yakaar-Teranga is different because Senegal plans to use the gas to power homes, cut fuel imports, and support local industries, not just for export.

The $7.5 Billion Challenge

PETROSEN estimates that Yakaar-Teranga will cost about $7.5 billion to develop.

The project has two phases.

Phase 1 will cost about $2.5 billion. It aims to produce around 300 million cubic feet of gas per day for domestic power generation.

This phase could help Senegal address power shortages and rely less on imported fuels.

Phase 2 will cost about $5 billion. It will focus on downstream industries such as fertiliser, petrochemicals, steel and cement.

Simply put, Senegal’s goal is not just to sell gas, but to use it to build a stronger industrial economy.

PETROSEN has said that first production could begin between late 2028 and early 2029. A final investment decision could come in December.

Financing Is the Biggest Test

It is one thing to own Yakaar-Teranga, but another challenge entirely to fund its development.

The first phase alone will cost about $2.5 billion, which is a large sum for a national oil company to raise without a major international partner.

PETROSEN says it may use regional bond markets, development finance institutions and diaspora-linked capital.

Possible funding sources include the African Development Bank, the World Bank, IFC, Gulf sovereign wealth funds, export credit agencies and Chinese policy banks.

However, every funding source has its own conditions. Even though PETROSEN owns the project, those who provide the money will still have a say in how the field is developed.

This is the challenging part of trying to control your own resources.

The Sovereignty Argument

Senegal’s new government came to power with a strong message on resource control. President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko have promised to give Senegal a bigger say in its natural resources.

Yakaar-Teranga is now the biggest test of that promise.

Sonko framed Kosmos’ exit as a victory because Senegal recovered a major gas asset without paying compensation.

But critics see things differently. They question whether Senegal is better off owning all of a project it may struggle to finance, or if it would be wiser to have a smaller share in a project supported by a major international company. That is the central question.

Is This Nationalisation?

The government has tried to avoid the word “nationalisation.”

Senegal’s Energy Ministry said the transfer followed existing licence terms and did not amount to nationalisation. Kosmos also rejected the nationalisation label.

However, Energy Minister Birame Souleye Diop publicly used the word “nationalise” when discussing the project.

This is important because investors pay close attention to the words used. Other oil and gas companies in West Africa will be watching how Senegal manages this transition.

If the process seems fair and attractive to investors, Senegal can still bring in funding. But if it appears unfriendly to private investors, raising money could become more difficult.

What Analysts Are Watching

Industry experts agree that Yakaar-Teranga is a big opportunity, but there are significant risks in carrying out the project.

The project needs deepwater technical expertise, long-term financing, and strong commercial support. Some analysts think PETROSEN’s goal to start production by late 2028 or early 2029 may be too optimistic. Financing is still not secured, a technical partner has not been named, and the project structure changed a lot after BP and Kosmos left.of BP and Kosmos.

Even so, the field is too significant to overlook. Its size means development is likely. The key questions are who will fund it, who will help build it, and how long it will take.

The Local Community Issue

Yakaar-Teranga will also face community and environmental concerns.

Fishing is central to Senegal’s food supply and coastal economy. Fish provides nearly 70 per cent of the animal protein consumed in the country.

Senegalese artisanal fishers have already raised concerns about the Grand Tortue Ahmeyim LNG project. They say offshore gas infrastructure has affected access to traditional fishing waters and raised environmental worries.

Yakaar-Teranga could lead to similar concerns.

Now that PETROSEN is the sole project owner, it needs to handle community relations carefully, meet environmental standards, and maintain its approval to operate.

What This Means for West Africa

Yakaar-Teranga’s impact goes beyond Senegal. It sends a message to oil and gas investors throughout West Africa.

Senegal has the legal right to prioritise domestic energy needs. But it must still attract the capital and expertise needed to develop the field.

The project could help Senegal lower its fuel import costs, reduce energy subsidies, and support industrial growth. It might also show that African national oil companies can lead major projects independently.

However, success will require careful management and discipline.

Senegal must turn political victory into financial closure, technical delivery and real economic impact.

Expert View

Yakaar-Teranga is a powerful test of African resource sovereignty.

Senegal now has full control of a major gas asset, which is important politically. But having control does not automatically lead to building pipelines, power plants, or factories.

PETROSEN now needs reliable partners, solid contracts, and clear financing. Without these, the project could be delayed.

A balanced approach may be best. Senegal can keep control of the project while bringing in technical and financial partners with clear agreements.

This would protect Senegal’s interests without discouraging long-term investment.

FAQs

What is Yakaar-Teranga?

Yakaar-Teranga is a deepwater offshore gas field in Senegal. It holds an estimated 20 to 25 trillion cubic feet of recoverable gas.

Who owns Yakaar-Teranga now?

Senegal’s state oil company, PETROSEN, now owns 100 per cent of the licence after Kosmos Energy exited in April 2026.

Why did BP leave the project?

BP left in 2023 after disagreeing with Senegal over how to use the gas. BP wanted LNG exports, while Senegal wanted domestic power and industrial use.

Why did Kosmos Energy leave?

Kosmos could not develop the project on its own after BP exited. It searched for a new partner but failed to secure one, then agreed to hand back the licence.

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