Senegal, Mauritania Sign Tortue Agreement
A key milestone has been reached towards the Tortue floating LNG proejct, with signature by the Mauritanian and Senegalese governments of the Inter-Governmental Cooperation Agreement (ICA) enabling development of the cross-border natural gas field.
BP said February 12 that the ICA , signed three days earlier in Mauritania, “will enable the development of the BP-operated Tortue/Ahmeyim gas project to continue to move towards a final investment decision.”
Mauritanian energy petroleum and mines minister Mohamed Abdel Vetah and Senegal’s energy minister Mansour Elimane Kane signed the agreement in a joint meeting during the Presidential Summit held in Nouakchott, Mauritania February 9. The agreement between the two countries provides for development of the Tortue field through cross-border unitisation, with a 50%-50% initial split of costs, production, and revenue, as well as a mechanism for future equity redeterminations based on actual field performance.
Kosmos has indicated in the past that the ICA is based on industry best practice for the development of cross-border resources, based on the landmark Frigg Agreement of 1976 between Norway and the UK.
BP will lead the floating LNG development to be based on the Tortue/Ahmeyim gas field, which has estimated resources of 15 trillion ft3 of gas and is located on the border between the two countries. The LNG venture would “export LNG to global markets as well as supplying gas to Senegal and Mauritania”, said BP.
The UK major has 60% of the Saint-Louis Profond and Cayar Profond blocks offshore Senegal of 60%, with Kosmos Energy30% and state Petrosen 10%. In Mauritania, BP’s interests in offshore Blocks C-6, C-8, C-12 and C-13 is 62%, with Kosmos 28% and state SMHPM 10%.