UK's oil major BP said on Monday that together with its joint venture partner Kosmos, it had made a major gas discovery offshore Senegal off the West African coast.
BP and U.S.-based Kosmos Energy commissioned the drilling of Yakaar-1 exploration well in the Cayar Offshore Profond block. Kosmos Energy estimates Yakaar-1 discovered a gross P mean gas resource of around 15 trillion cubic feet (Tcf), in-line with pre-drill expectations, the Dallas-based company said in its statement on the discovery.
According to BP Upsteam chief executive officer, Bernard Looney:
"This discovery marks an important further step in building BP's new business in Mauritania and Senegal. We look forward to results from the additional exploration wells planned for 2017."
Both BP and Kosmos believe that the Yakaar discovery, coupled with the Teranga discovery made last year, have enough resources to support the creation of another LNG hub in the basin.
The gas discovery offshore Senegal adds to a crude oil discovery off the Senegalese coast made earlier this year by Australian exploration company FAR, which said that it had discovered more than 1.5 billion barrels of crude as a result of a 3D seismic study.
At the end of last year, BP said that it has signed agreements with Kosmos Energy to acquire a 62-percent working interest, including operatorship, of Kosmos' exploration blocks in Mauritania and a 32.49-percent effective working interest in Kosmos' Senegal exploration blocks. Back then, BP said it would invest nearly US$1 billion, mostly in the form of a multi-year exploration and development carry to buy offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.
Related: Saudi Oil Minister: OPEC Output Cut Could Extend Into 2018
In April, BP agreed to buy another 30 percent in the Saint-Louis Profond and Cayar Profond blocks offshore Senegal from Timis Corporation, subject to government approval. Upon completion of the deal, BP will hold participating and effective working interests close to 60 percent, Kosmos -30 percent, and Société des Pétroles du Sénégal (Petrosen) - 10 percent.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More