Senegal’s Energy Boom backed by Africa Fortesa Corporation: Harnessing Offshore and Onshore Resources for a New Era of Growth

In recent Years Senegal has grown to be a role model for the African continent and they are by no means letting their guard down, at least not when it comes to the oil and Gas exploration domain or rather Energy, One of the fore arms of any powerful nation. She is gearing up to solidify her place as a major player in the global energy scene, with two major gas production projects on the horizon by the end of 2024. The Greater Tortue Ahmeyim (GTA) project is expected to begin liquefied natural gas (LNG) production, while the Yakaar Teranga gas field is set to deliver its first output around the same time. Earlier in 2024, Senegal also made a significant leap forward in oil production with the commencement of operations at the Sangomar field, managed by Woodside Energy, aiming to produce 120,000 barrels of oil per day.

While these high-profile offshore projects are largely geared toward international exports, there is untapped potential in Senegal’s onshore energy sector, which could play a key role in meeting domestic energy demands. Africa Fortesa Corporation has been leading onshore developments, particularly through its work on the Gadiaga Field since 1997. What began as a modest natural gas discovery by PetroSen in 1996 has since evolved into a field that has generated over $100 million in gross revenues from a $50 million investment. As the Gadiaga Field nears the end of its productive life, Africa Fortesa is looking at new opportunities, especially in the Diender Exploration Permit area, with high hopes for future commercial finds.

In addition to its work in gas extraction, Fortesa has tapped into oil reservoirs beneath the Gadiaga Field and believes it has identified other promising gas reserves in onshore Permian source rocks, which may be accessible through advanced drilling techniques. Rogers Beall, Executive Chairman of Africa Fortesa, noted in an interview with Energy Capital & Power that onshore exploration in the MSGBC Basin requires a different approach. The complex terrain and compartmentalized reservoirs mean higher-risk drilling efforts are needed, which Fortesa is prepared to undertake.

Beall sees tremendous potential in the MSGBC Basin, which he refers to as a “Super Giant Petroleum Province.” With an estimated 10 billion barrels of recoverable oil and gas equivalents, Fortesa projects that Senegal’s onshore gas reserves alone could reach 667 billion cubic feet. These resources could meet the country’s energy needs for at least a decade, particularly in gas-to-power initiatives aimed at reducing energy costs and fueling industries that could make Senegal more competitive in the global market.

For Beall, a key focus is on decreasing Senegal’s reliance on imported fuels and lowering electricity costs through increased domestic energy production. By doing so, the country could see a significant rise in power availability, which is crucial for the roughly 30% of the population that currently lacks access to electricity. In his view, this shift toward locally sourced energy could create more affordable power for Senegalese households and industries, ultimately driving economic development.

However, to unlock the full potential of onshore exploration, Senegal’s regulatory landscape needs to evolve. The 2019 Petroleum Code was a step forward, introducing greater transparency and local content requirements, but Beall believes further improvements are needed. He suggests that lowering the costs of entry and addressing operational barriers could help attract more investment. In August 2024, President Bassirou Diomaye Faye took steps in this direction by forming a commission to review Senegal’s oil and gas contracts. This initiative aims to balance the interests of the nation with those of international investors, while increasing the participation of local stakeholders in the energy sector.

Beall also called for greater Pan-African collaboration in developing the continent’s hydrocarbon resources. He emphasized that Africa’s energy future should be driven by African countries themselves, reducing dependence on external investors. While offshore projects like GTA and Sangomar are aimed at exporting gas and oil to Europe, Beall argues that focusing on domestic consumption would offer a more sustainable path to energy security. He believes that achieving energy self-sufficiency could open the door to broader economic opportunities in areas such as agriculture, water desalination, and industrial development, all of which require reliable, affordable power.

With these strategic developments, Senegal stands at the brink of a new era in energy, one where both its offshore and onshore resources could transform the country’s economic landscape while positioning it as a leader in energy production within Africa.