Senegal rows back on minister comments about nationalisation of gas field as end of license looms

Dec 11 (Reuters) - Senegal's energy ministry on Thursday rowed back on previous comments from its minister that it planned to nationalise the Yakaar-Teranga gas field, of which U.S. firm Kosmos KOS.N owns 90%, with both parties indicating the licence would be returned to the state by next July.

Senegal's Energy Minister Birame Souleye Diop said on Tuesday that the government wanted to nationalise Yakaar-Teranga, where state-run Petrosen holds the remaining 10% stake. The two companies have been looking for at least one more partner to enter the project in order to progress a development plan but no breakthrough has been reached yet.

Kosmos became the operator of the Yakaar-Teranga gas field in 2023 after BP decided to exit. The company's licence for the field runs out in July 2026.

"Kosmos Energy has worked hard with Petrosen to find a suitable partner and agree a commercially viable development concept for the field. In the absence of a new partner, Kosmos will work with Petrosen to transfer the licence back to the Senegalese state on, or before, the licence expiry in July 2026," Kosmos said in a statement.

In a post on social media on Thursday, Senegal's energy ministry said Senegal's strategy "did not imply in any way the nationalisation of the Yakaar-Teranga project" and that Kosmos remained a strategic partner.

"The ministry of energy, petroleum and mining will work closely with Kosmos and Petrosen to ensure the transfer of the licence to the Senegalese state by its expiry in July 2026," the ministry said.

On Tuesday, Diop had said of Yakaar-Teranga that "it's a project we have operators for, and we want to nationalise it and give Petrosen, which has the expertise, the opportunity to develop this project."