The Mauritanian government has opted not to renew international oil company bp’s contract for the exploitation of the BirAllah gas field, located in the coastal basin of Mauritania.Despite bp’s interest in extending the contract to conduct further feasibility studies on field exploitation, the Mauritanian government has opted to initiate development work directly and is looking for a new partner on the project.
bp, in collaboration with American oil company Kosmos Energy, already operates the Grande Tortue Ahmeyim gas field located between Mauritania and Senegal. This gas field is poised to commence production in the third or fourth quarter of 2024.Discovered in 2019, the BirAllah gas field is estimated to contain nearly 60 trillion cubic feet of gas.
In a surprising development, the Mauritanian government has decided not to renew the operating contract for the BirAllah gas field with the British company BP. Despite BP’s requests for a three-year extension to complete feasibility studies, the contract has officially come to an end.Located in Mauritania’s coastal basin, the BirAllah gas field, to be discovered in 2019, is a site of vital importance. With estimated reserves of 60 Tcf of gas initially in place (GIIP), BirAllah represents a crucial resource for the Mauritanian economy and promises to be a source of substantial revenue.
Sources close to the matter indicate that BP had hoped to extend its commitment to further research into the viability of exploiting the field. However, the Mauritanian authorities prefer to take the next step and begin development work directly. This decision highlights a divergence of vision between the government and the oil operator.
In response to this decision, BP expressed its intention to continue exploring other opportunities in Mauritania, including by signing a new exploration and production sharing contract for the same gas field.
Emil Ismayilov, BP’s Senior Vice President for Mauritania and Senegal, affirmed the alignment of Mauritania’s energy transition plans with BP’s strategies. He emphasized the importance of BirAllah as a major growth opportunity for BP in the region and mentioned the company’s commitment to supporting Mauritania in the development of a diversified, low-carbon energy mix.
In parallel with these developments, BP and its partners are continuing with phase 1 of the Grand Tortue Ahmeyim project, demonstrating their ongoing commitment to the Mauritanian energy sector despite the recent contractual changes with BirAllah.
Source:https://energycapitalpower.com