BP exits Senegalese gas field amid disputes with Government over priority

British multinational oil and gas company, British Petroleum (BP) has left the Senegalese Yakaar-Teranga natural gas field following a fallout with authorities over the utilization of the commodity, Sputnik reports.

The move came after Senegal’s Minister of Oil and Energy Antoine Felix Diome told media that both sides are on opposite sides when it comes priorities.

“We didn’t agree with BP on the daily production capacity, on the commercial strategy or on the date of the first gas delivery. BP favored exports, while we want to develop the gas for the domestic market,” Diome was quoted by the media as saying.

The West African country wants to use the 25 trillion cubic feet of gas located at the field to enhance electrification and reduce fuel prices.

Diome also stressed the Senegalese government is at loggerheads with the energy giant on the development timeline for the site. The African country reportedly planned to speed up the development for gas delivery by 2026, while the company set the deadline for 2028.

“Senegal can’t wait that long,” Diome was cited as saying. BP, the state official also added, relinquished its stake without any “financial compensation.”

United States’ Kosmos Energy company, another shareholder in the field has however increased its stake in the project from 30% to 90%, while the Senegalese State-owned enterprise Petrosen plans to eventually acquire a majority interest in the field. Senegal is looking forward to a new partner for a 34% stake in the production phase.