Senegal Transfers Yakaar-Teranga Gas Project to State Firm PETROSEN as Kosmos Energy Exits Major Offshore Development
Senegal has moved to assume full control of its strategic Yakaar-Teranga Gas Project following an agreement for the withdrawal of US-based Kosmos Energy, marking a significant shift in the country’s upstream energy landscape.
The decision places the development of one of West Africa’s largest gas discoveries firmly under state management.
Prime Minister Ousmane Sonko announced that the agreement allows the Senegalese state to take over development of the project without financial compensation to Kosmos Energy.
Under the arrangement, the exploration licence will be transferred exclusively to the state-owned oil company PETROSEN through a ministerial order, making it the sole operator of the field.
The Yakaar-Teranga field, located in the Cayar Offshore Profond Block, is one of Senegal’s most important deepwater gas assets, with estimated recoverable resources of around 25 trillion cubic feet of gas.
The project is central to the country’s broader hydrocarbons strategy alongside the Sangomar Oil Field and the Greater Tortue Ahmeyim LNG Project, both of which are key pillars of Senegal’s emerging energy sector.
Earlier policy statements had outlined a structured transition for the project. During the MSGBC Oil, Gas & Power Summit 2025 in Dakar, Senegal’s Ministry of Energy, Petroleum and Mines emphasized that its strategy did not amount to nationalisation and reaffirmed Kosmos Energy as a strategic partner at the time.
Officials indicated that PETROSEN would assume the licence upon its scheduled expiry in July 2026 in line with contractual provisions.
However, government messaging has since shifted toward stronger state control. Energy Minister Birame Souleye Diop later stated that Senegal intends to place the project under national management to prioritise domestic gas supply and support long-term economic development.
Kosmos Energy has now confirmed its withdrawal from the Yakaar-Teranga project under the agreement with the Senegalese government, ending its previous 90 percent operating stake in the field.
The company had earlier indicated that it could exit the block if commercially viable development plans or suitable partnership structures were not secured, highlighting the technical and financial challenges associated with large-scale offshore gas development.
The transfer of full control gives PETROSEN authority over development timelines, financing strategies, and monetisation plans for one of Senegal’s largest gas discoveries. Authorities view Yakaar-Teranga as a cornerstone of future industrialisation, domestic energy supply, and liquefied natural gas export ambitions due to its scale and strategic offshore location.
While greater state control strengthens resource sovereignty, analysts caution that it also increases pressure on government institutions to mobilise financing, technical expertise, and operational capacity.
The key challenge for Senegal now lies in execution transforming a major offshore gas resource into sustained production and long-term economic value.
