Senegal, a newly minted oil producer and soon-to-be gas producer, has established a commission to review and potentially renegotiate contracts signed under the previous government, which the new administration claims are unfavorable to the country’s interests. President Bassirou Diomaye Faye, who was elected in March on a reformist platform, emphasized the need to re-examine these agreements to better align them with Senegal’s national interests. The commission consists of senior government officials and experts in oil, mining, tax, and economics.
President Faye, speaking at the launch of the commission, expressed regret over the manner in which previous agreements were made, stating they were often detrimental to Senegal’s strategic interests. The commission’s task is to scrutinize all aspects of the agreements scientifically and methodically, ensuring they are rebalanced in favor of the nation. The commission’s formation follows Senegal’s recent commencement of oil production in June at the Sangomar offshore oil field, operated by Australia’s Woodside Energy.
Senegal also shares the Greater Tortue Ahmeyim (GTA) liquefied natural gas field with Mauritania. The gas field, developed by British energy giant BP, Kosmos Energy from the U.S., and the state-owned companies of Senegal and Mauritania, is expected to begin production later this year. Both nations are counting on this project to spur development.
This commission marks a significant move by the new Senegalese government to assert greater control over its natural resources, ensuring that future oil and gas revenues benefit the country more equitably. The commission’s findings could lead to renegotiations of key contracts, altering the dynamics of Senegal’s emerging energy sector.
