Similar gas projects in Angola
and Nigeria experienced several
delays. Finding international
markets for the resource is an-
other issue to be tackled. China
is known to be interested in this
greener energy source, but its
market is not easily accessible.
“Measuring the quality of the
reserves and establishing a market-
ing pattern requires time. Unlike
Mozambique and Egypt, Senegal is
not well-positioned geographically
to facilitate easy supply to China,”
the exploration manager of an oil
major tellsThe Africa Report. He
adds that the country is still con-
sidered too risky for his company
to commit the large investment
needed to build gas infrastructure.
“Selling gas is more complic-
ated than selling oil,” says Francis
Perrin, head of energy strategies
and policies at OAG Africa, a re-
search outfit. “Unlike petrol, gas
doesn’t have a global marketplace
so you have to successfully pen-
etrate the three major regional
markets – North America, Europe
and the fastest-growing, which is
the Asian market – each operating
under a different structure and
pricing system”.
CAUTION URGED
In Dakar, many believe that the
riches of oil production are with-
in reach. The growing discussion
about good governance and
transparency in the sector has
reinforced that impression. But
for Mamadou Faye, the CEO of
Senegal’s state oil firm Petrosen,
the die hasn’t yet been cast. “There
are people who think everyone
in Senegal will receive millions
of CDF francs,” he says. “But de-
spite the volume of hydrocarbon
reserves announced, nothing is
certain. Project profitability, which
depends on the quality of oil, op-
erating costs and world oil prices,
has to be assessed. Moreover, a
company can make a discovery
but decide to close up shop if it’s
not making enough profit.”
This uncertainty adds to the low
number of jobs the oil and gas sec-
tor is expected to create – only 5,000
for Greater Tortue – compared to
other key sectors. It’s imperative
for the country to ensure
25 trn
Estimated
volume
(in cubic
feet) of
liquefied
natural
gas in the
Greater
To r t u e a r e a
in Senegal,
considered
the biggest
gas reserve
in West
AfricaSOURCE:KOSMOS