This article is sponsored by Société Mauritanienne des Hydrocarbures
Société Mauritanienne des Hydrocarbures (SMH) is a key player in Mauritania’s energy sector, with a mandate to responsibly manage and maximise the nation’s hydrocarbon resources. Its vision is to become an integrated national oil company of exceptional technical capability and ensuring Mauritania’s energy independence and economic growth through sustainable exploration, production, and valorisation of hydrocarbons. The company is not only a pillar of energy production but also as a driving force for local industry development in Mauritania.
SMH is tasked with a comprehensive suite of activities in the oil and gas sector. These range from exploration and appraisal to production, processing, and distribution of hydrocarbons across the country and within its Economic Exclusive Zone. Additionally, SMH oversees critical infrastructure projects, ensures a secure supply of petroleum products for the domestic market, and provides vital technical assistance to the State and other partners.
Since the initial steps in 2004 with the creation of the “GPC” project to oversee the Chinguetti field, SMH has evolved significantly. It was officially launched in 2005 as a public entity with an industrial and commercial mandate, starting with a 12% stake in the Chinguetti field. Over the years, SMH has expanded its scope, guided by a mission to manage Mauritania’s hydrocarbon resources responsibly, sustainably, and for the direct benefit of the Mauritanian nation.
In 2009, SMH achieved the legal status of a national oil company, in line with new legislative frameworks, including a revised Mining Code that introduced the state’s participation rights in mining operations. This was followed by the introduction of a new Hydrocarbons Code and a Contract Model (CEP) in 2010-2011, granting SMH carried interest in exploration activities. In 2012, with its first CEP and related Joint Operating Agreements, SMH established an active role in exploration. The company’s mandate broadened further in 2014, when a presidential decree officially transformed SMH into SMHPM, allowing it to expand into hydrocarbons’ downstream operations and mining activities. However, in 2021, SMH returned to its original name and refocused on hydrocarbons exclusively, guided by Decree No. 2021-049.
SMH’s upstream exploration centres on two promising hydrocarbon regions in Mauritania. The Taoudeni Basin, one of Africa’s largest intracratonic basins, has seen exploration since the 1970s. A resurgence in 2004, involving SMH, Total and Repsol, expanded seismic coverage and yielded several exploratory wells, uncovering both Paleozoic and Neo-Proterozoic petroleum systems. In the Coastal Basin, exploration has progressed since the 1960s, with key discoveries like the Chinguetti oil field in 2001, which opened the Tertiary petroleum system. The major GTA gas discovery in 2015, followed by BirAllah, attracted global industry leaders.
Its upstream development operations focus on three significant gas fields. The GTA field, straddling the Mauritania-Senegal maritime border, is Mauritania’s first major gas field, with reserves estimated at 25-50 trillion cubic feet (TcF). The BirAllah field is Africa’s largest gas discovery, with around 80 TcF. Its development roadmap is under discussion, targeting a Final Investment Decision by mid-2025. The Banda field, located offshore near Nouakchott, holds 1.2-2 TcF of gas and 200 million barrels of oil.
In the midstream sector, SMH seeks to monetise national gas resources and remains open to partnerships to advance diverse midstream opportunities, including LNG bunkering, CNG applications, PP/PE plastics, phosphatic fertilisers and explosives production, methanol production, and Gas-to-Liquid (GTL) processing. SMH established a presence in the downstream sector when in June 2022, to meet rising market demand, it began expanding the Nouakchott port depot. The project includes constructing new storage tanks for diesel, fuel oil, and gasoline, increasing total capacity by 38% by the end of 2023. Additionally, a pipeline renewal project for receiving petroleum products by ship is set to launch in early 2023.
With its commitment to sustainable energy development and economic growth, SMH is a cornerstone of Mauritania’s oil and gas sector. Through strategic upstream, midstream, and downstream operations, it seeks to not only enhance the nation’s energy security but also drive innovation and growth in line with Mauritania’s Gas Master Plan. By embracing global partnerships and advancing key projects, SMH is well-positioned to unlock Mauritania’s full resource potential, fostering prosperity and resilience for the future.