BP to invest US$1 billion in new Mauritania LNG hub
BP plans to build a new LNG hub in west Africa following a deal with Kosmos Energy to collaborate in offshore drilling and development work.
BP is taking a 62 per cent working interest in gas blocks offshore Mauritania and 32.5 per cent in blocks in Senegal in order to invest in a new LNG project close to European markets.
This agreement should open up a new gas project off Mauritania that could hold up to 15trn ft3 (tcf) of gas in deepwater blocks. Kosmos estimates that much more gas is present in the region and that up to 1 billion barrels of hydrocarbon liquids could be found. The multi-year exploration and development agreement covers blocks C-6, C-8, C-12 and C-13 in Mauritania as well as Saint-Louis Profond and Cayar Profond blocks in Senegal. The biggest discovered resource within these blocks is the Tortue field.
BP said it will initially invest nearly US$1bn in the gas exploration and development project. The partners plan to process Tortue gas and transport it through subsea pipelines to a nearshore LNG facility. “BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin,” said BP chief executive Bob Dudley.
He continued: “We believe our expertise in integrating the gas value chain, together with Kosmos, along with the support of the Mauritanian and Senegalese governments brings together all the elements needed to create a new LNG hub in Africa.”
Initially the companies will drill three new exploration wells in 2017. This is expected to lead to more drilling and development work through the rest of this decade.