SENEGAL: Woodside Energy Group Ltd has announced the achievement of first oil from the Sangomar field offshore Senegal, marking a historic milestone as the country’s first offshore oil project.
The Sangomar Field Development Phase 1 is a deepwater project that includes a stand-alone floating production storage and offloading (FPSO) facility with a nameplate capacity of 100,000 barrels per day, as well as subsea infrastructure designed to allow for subsequent development phases.
“This is an historic day for Senegal and for Woodside,” said Woodside CEO Meg O’Neill.
“First oil from the Sangomar field is a key milestone and reflects delivery against our strategy. The Sangomar project is expected to generate shareholder value within the terms of the production sharing contract.”
O’Neill highlighted the project’s significance, stating: “Delivering Senegal’s first offshore oil project safely, through a period of unprecedented global challenge, demonstrates Woodside’s world-class project execution capability.
“We are proud of the relationships we have formed with PETROSEN, the Government of Senegal and our key international and local contractors to develop this nationally significant resource.”
Thierno Ly, General Manager of PETROSEN E&P, expressed his pleasure in reaching this milestone, stating: “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.”
Ly added: “This achievement is the result of the unwavering commitment of our teams, who have worked diligently to overcome challenges and meet our strategic objectives in a complex and demanding environment.
“We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation.”
The Sangomar Field Development Phase 1 features the Léopold Sédar Senghor FPSO, named after the first president of Senegal, which is moored approximately 100 kilometres offshore Senegal. The vessel has a storage capacity of 1,300,000 barrels.
The Phase 1 development includes 23 wells (11 production wells, 10 water injection wells, and 2 gas injection wells), with 21 of the 23 wells already drilled and completed, including 9 production wells.
The RSSD joint venture has also approved a 24th well (production well) that will be completed in the current campaign.
The Sangomar Project is being progressed by the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture, comprising Woodside (Operator and 82 per cent participating interest) and Societé des Petroles du Sénégal (PETROSEN) (18 per cent participating interest).
The Sangomar Field Development Phase 1 project cost estimate remains within the provided range of US$4.9-$5.2 billion.
The drilling campaign at Sangomar is ongoing, and Woodside expects to continue commissioning activities and safely ramp up production through 2024.
The crude quality is expected to be approximately 31 degrees API, which is in demand in European and Asian markets.
Woodside’s historical acquisition of participating interests in the RSSD joint venture from both Capricorn Energy and FAR included certain contingent payments.
Given the current timing of first oil and oil prices, Woodside anticipates making both these payments, with the final payments subject to ongoing production performance and oil prices.
Woodside will host a teleconference on Tuesday, June 11, 2024, at 09:30 AWST/11:30 AEST/20:30 CDT (Monday, June 10, 2024), providing an update on Sangomar first oil with a question-and-answer session led by the CEO and Managing Director Meg O’Neill.
