The Ministry of Petroleum, Mines and Energy in Mauritania concluded a contract aiming to develop huge reserves of natural gas, which is in line with the country’s tendency to increase reliance on gas as an important and reliable source of energy. The contract was signed on Monday, April 1, 2024 and was signed by the Minister of Petroleum, Mines and Energy “Ould Ashrouqa aims to exploit gas reserves in the “Banda” and “Taft” fields located in the Mauritanian coastal basin.

The Ministry concluded an agreement to produce gas with the representative of the group of companies, “Kogas” and “Taqa Arabia,” and the CEO of “Kogas,” Khaled Abu Bakr, confirmed that the Banda and Taft field in Mauritania contains 2.2 trillion cubic feet of natural gas.

The gas extracted from the fields has a significant impact on electricity production in Mauritania, as it will supply gas to the dual power station with a capacity of 180 megawatts. The contract provides for the provision of additional electricity reserves that will enable companies to benefit from improved energy performance in light of the intense demand for energy.

The agreement represents an important step in the framework of new moves to value Mauritanian sources of gas, in addition to strengthening the energy sector, stimulating investments in the field of exploration and production in the coastal basin, and raising the level of exploitation of national reserves.

The group is proud to participate in the development of this promising economic project, as it will provide great potential in the field of electricity production for the local market and major industrial entities in the country. Political and security stability represents an important motivating factor for the establishment of large investment projects, especially in the fields of energy. The project includes the Mauritanian Hydrocarbons Company and Kogas. Its headquarters are located in Dubai, in addition to the Egyptian Taqa Arabia Company.

The total investment volume in the project exceeds one billion US dollars and covers the extraction, transportation and distribution of gas from extraction to electricity generation through the construction of a new station and gas transmission facilities. The field will provide mineral companies with electricity produced from liquefied gas to operate factories and heavy, energy-intensive machinery.

The field was discovered for the first time in 2003 in national waters, 60 kilometers southwest of Nouakchott, by the Woodside Oil Company, and the field contains huge reserves estimated at about 1.5 trillion cubic feet, quantities considered sufficient to ensure electricity production of up to 300 megawatts for a period of more than 20 years. In general, despite numerous attempts to develop it, the project did not succeed for many reasons, most notably gas and the global economic crisis.

Mauritania announced its intention to seek the expertise of Egyptian and Emirati companies to develop the two gas fields. On March 28, 2024, it was announced that the Mauritanian Council of Ministers reviewed during its meeting a statement presented by the Minister of Petroleum, Mines and Energy regarding the contract for gas exploration and production.

The project will achieve the objectives of the sector’s strategy, which aims to ensure comprehensive access to electricity in Mauritania by 2030, and support synergy between the gas and electricity sectors, which aims to supply industrial and electrical companies at competitive prices.

The current field could significantly increase these reserves as the North African country seeks to shore up its oil and gas reserves; With the aim of contributing to meeting the global demand for energy, in addition to becoming an important regional player in the field.