Published on 26 Dec 2024

Enterprise Singapore maps West African oil and gas opportunities

The most significant projects are in Nigeria, Ghana, Senegal, and Côte d’Ivoire

Enterprise Singapore (ESG), the government agency supporting the internationalisation of local businesses, has noted significant opportunities for Singapore firms in West African oil and gas sector. Following a recent industry roundtable, the agency identified areas of potential involvement, including front-end engineering design, offshore asset and vessel construction, maintenance and repair operations (MRO), vessel chartering, subsea equipment supply, oil spill response, environmental management, and workforce training.

Enterprise Singapore highlights Nigeria, Ghana, Senegal, and Côte d’Ivoire as the leading countries for upstream mega-projects.

  • Nigeria remains at the forefront of West Africa’s upstream oil and gas projects, with US$18bn in investments underway. Among the notable developments is the US$5bn Bonga North Project, where Shell holds the largest working interest at 55%. This offshore expansion is expected to unlock an estimated 350m barrels of crude oil reserves.
  • In Ghana, the Pecan oil field, situated in waters over 2,400m deep and approximately 160km southwest of Takoradi, represents the country’s most ambitious offshore project. Operated by Pecan Energies, owned by Africa Finance Corporation, the field holds an estimated 334m barrels of crude.
  • Senegal recently joined the ranks of oil-producing nations with the commencement of production at the Sangomar field, situated about 100km offshore from the capital Dakar. Operated by Woodside Energy, the project is expected to produce around 100,000 barrels per day. Meanwhile, the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, a cross-border initiative between Senegal and Mauritania, is nearing completion.
  • In Côte d’Ivoire, the Baleine offshore oil and gas field, discovered in 2021, is the country’s largest hydrocarbon find in two decades. Estimated to hold up to 2.5bn barrels of oil and 3.3tr cubic feet of gas, the field is operated by Eni in partnership with Petroci. Production began in August 2023, with plans to increase output in subsequent phases.

Singaporean companies are already making their mark in the region. MODEC Offshore Production Systems, a Singapore-based subsidiary of Japan’s MODEC, constructed the Léopold Sédar Senghor floating production storage and offloading (FPSO) unit for Senegal’s Sangomar Field. An FPSO is a vessel designed to process and store oil or gas from undersea wells and to transfer the extracted resources to tankers or pipelines. MODEC is also responsible for the FPSO's operation and maintenance, with an initial service period of 10 years and a potential 10-year extension. Singapore’s Keppel Offshore & Marine, now part of Seatrium Group, supported its construction.

Singaporean expertise was on display at the GTA project. Seatrium converted an end-of-life LNG tanker into the Gimi, a floating LNG vessel designed to liquefy natural gas from offshore fields. Delivered to Golar LNG in November 2023, the vessel underscores Singapore’s capabilities in advanced offshore engineering.

According to ESG, companies need to be well-acquainted with the region’s local content regulations to successfully tender for contracts. Interested firms might consider setting up in-market operations or collaborating with local businesses, as selecting the right partner could be key to success.

 

References

'AFC provides US$100 million to Aker Energy's deep water offshore oil project in Ghana', Africa Finance Corporation, 15 July 2019

Keppel O&M awarded floating production contracts worth around S$75 million’, Keppel, 01 August 2022 

Sangomar FPSO relocating to Singapore’, Offshore, 30 November 2022

Seatrium delivers world’s second floating liquefaction vessel conversion for sustainable LNG production’, Seatrium Limited, 20 November 2023

Woodside achieves first oil at Sangomar in Senegal’, Woodside Energy, 11 June 2024

Woodside's Sangomar project produces first oil in Senegal’, Reuters, 12 June 2024

Senegal starts producing oil as president promises benefits’, BBC, 12 June 2024

MODEC congratulates Senegal and Woodside on first oil at Sangomar Field Development Phase 1’, MODEC, 12 June 2024

'Italy’s Eni to invest $10 bln in Ivory Coast Baleine field, minister says', CNBC Africa, 24 November 2023

'Falling production, waning investment leave Ghana's oil sector at a crossroads', S&P Global, 15 March 2024

'Woodside's Sangomar project produces first oil in Senegal', Reuters, 12 June 2024

'Floating oil production system ready for operation offshore Ghana in project involving LUKOIL', ROGTEC, 29 August 2024

'TotalEnergies to invest in Bonga North Offshore project others, before the end of 2024 - oil minister', Nairametrics, 19 October 2024

Nigeria targets FID on Shell-operated Bonga North oil project before 2025’, S&P Global, 21 October 2024

'LinkedIn post', EnterpriseSG - Africa, November 2024

'What we do', Pecan Energies, Accessed 05 December 2024

'Baleine, there is great energy in Côte d'Ivoire', Eni, Accessed 13 December 2024

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