Senegal’s First Oil Exports Push Economic Growth to Record High

By Charles Kennedy - Dec 30, 2024

Senegal is seeing a record jump in economic growth after its first oil project and oil exports were launched in the middle of 2024.

Senegal’s gross domestic product surged by 8.9% in the third quarter compared to the second quarter and soared by 11.5% compared to the same quarter of 2023, data from the National Agency of Statistics and Demography, ANSD, showed on Monday.

Non-oil GDP rose by 2.1% in Q3 compared to the second quarter, according to the official data.

Senegal’s record-high growth rates follow the start-up of the Sangomar oil field offshore the West African country in June. Six months ago, Australia-based Woodside achieved first oil at the project, which is the country’s first offshore oil project.

The Sangomar Field Development Phase 1 is a deepwater project including a stand-alone floating production storage and offloading (FPSO) facility with a nameplate capacity of 100,000 barrels per day (bpd) and subsea infrastructure that is designed to allow subsequent development phases, Woodside says.

“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,” Thierno Ly, general manager of Senegal's national oil company Petrosen said in June, commenting on the milestone.

Senegal’s economy is set to receive another shot in the arm in early 2025 when the first LNG shipment from a major gas and LNG project operated by BP is expected to take place.

The Greater Tortue Ahmeyim LNG export project offshore Mauritania and Senegal is being developed by UK-based supermajor BP and has seen several delays in recent years. The latest timeline says start-up will take place in early 2025, and the companies look confident they would meet that deadline.

BP and project partner Kosmos are developing the Greater Tortue Ahmeyim Phase 1 project, which will use a floating liquefied natural gas (FLNG) vessel to produce LNG from the massive natural gas find offshore Mauritania and Senegal in West Africa made in 2015.

By Charles Kennedy for Oilprice.com