Finance

Senegal: SNE oil field development cost soars by 40% to $4.2bln

Senegal: SNE oil field development cost soars by 40% to $4.2bln
Wednesday, 30 October 2019 18:35

Australia’s FAR announced on Oct 29 that the investment planned to develop the SNE oil field in Senegalese waters increased by 40% to $4.2 billion, as the project partners have decided to buy rather than lease a Floating Production Storage and Offloading (FPSO) vessel for the project.

As a result, a large part of the field's development will be financed by debt, the company explains. The project's break-even point has increased from $22 per barrel over the life of the field to $33 per barrel. For Cath Norman, FAR's MD, the high profitability of the project means that the value of FAR's shares should triple by the first oil delivery scheduled for late 2022.

FAR currently holds 15% of the project, but its stake will be reduced to 13.67% if the Senegalese government exercises the option to increase its own. SNE will produce up to 100,000 barrels of oil per day. The field will also produce natural gas condensate.

Olivier de Souza

On the same topic
Bank aims to raise CFA67.5 billion ($120 million) by selling 20% stake on BRVM Offering expected in May 2026, with listing scheduled for August...
Ivory Coast adopted two draft laws to reform banking and microfinance regulations. The banking reform introduces Islamic finance, fintech companies and...
Gabon created a National Public Debt Committee to oversee debt policy, coordination and control. The government also launched an audit to determine the...
The World Bank approved a $225 million program to strengthen healthcare, nutrition and early childhood development in Ivory Coast. The program...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
03

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
04

From WHO-led efforts to strengthen pandemic preparedness to measles vaccination drives in Uganda, al...

Weekly Health Update | Africa Steps Up Pandemic Preparedness as Health Sovereignty Takes Center Stage
05

Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...

Chinese Automaker Jetour to assemble SUVs in South Africa from 2027
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.