Senegal’s energy ministry has confirmed that it will not nationalise the Yakaar‑Teranga gas field, where Kosmos Energy holds a 90 % stake. The decision follows an earlier statement by Energy Minister Birame Souleye Diop on December 9 that the government was considering nationalisation, a prospect that had sent Kosmos’s shares sharply lower on December 10.
The Yakaar‑Teranga field, estimated to contain roughly 25 trillion cubic feet of recoverable gas, is one of the world’s largest recent discoveries. Kosmos, which became the operator in 2023 after BP’s exit, is now facing a critical window: its license expires in July 2026, and the company must secure a partner or risk returning the licence to the state if no new partner is found. The ministry’s clarification removes the immediate political risk that had threatened the project’s development plans and financial projections.
The market reaction to the initial nationalisation talk was swift: Kosmos shares fell 6.1 % on December 10, hitting a five‑year low, as investors priced in the uncertainty over ownership and potential delays. The subsequent confirmation of no nationalisation has helped calm the market, but the underlying risk remains because the company still needs to finalize a partnership before the July 2026 expiry. Management has indicated that it is working with Petrosen, the state‑controlled partner holding the remaining 10 %, to find a suitable commercial partner and to agree on a viable development concept.
Energy Minister Diop said the project “has operators for it, and we want to nationalise it and give Petrosen the opportunity to develop it to meet domestic gas needs, without ruling out the possibility of exporting.” Kosmos added that it “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.”
The decision underscores the importance of political risk management for upstream projects in emerging markets. While the ministry’s statement removes the immediate threat of nationalisation, the need to secure a partner before the licence expiry remains a key hurdle that could delay production and affect the company’s long‑term revenue stream from the field.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.