Mauritanias Smh Takes Critical Role In Growth Story

Socit Mauritanienne des Hydrocarbures SMH is a key player in Mauritanias energy sector, with a mandate to responsibly manage and maximise the nations hydrocarbon resources. Its vision is to become an integrated national oil company of exceptional technical capability and ensuring Mauritanias 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 Mauritanias 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 states 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 companys 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.

SMHs upstream exploration centres on two promising hydrocarbon regions in Mauritania. The Taoudeni Basin, one of Africas 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.