Australian-based multinational petroleum exploration and production company Woodside Energy has started marketing oil set to be produced from the Sangomar field offshore Senegal to potential buyers, Jeremy Soh, the firm’s Vice President of Global Oil has announced. Operated by Woodside Energy in partnership with Senegalese National Oil Company Petrosen, the Sangomar development is Senegal’s first commercial oil project, located 100 km south of Dakar and anticipated to start producing by the end of 2023 with an initial production capacity of 100,000 barrels per day.
The project operators will sell oil from Sangomar on a free-on-board basis with the minimum load or sale transaction comprising 950,000 barrels of crude oil. Loads will be conducted at the project’s terminal which has the ability to host Suezmax tankers and very large crude carrier ships, according to Soh.
The similarity of oil from Sangomar to Oman’s crude has the potential to draw buyers from Asia while the energy crisis in Europe has the potential to drive European buyers into purchase agreements with Woodside Energy.
Furthermore, the recent pledge by members of the Petroleum Exporting Countries to extend output cuts through 2024, which has caused a rise in global energy prices, will likely help Woodside Energy secure buyers as countries and consumers seek alternative energy to reduce high prices.
