July 21, 2024
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OIL & GAS

Senegal Starts Oil Production

Senegal’s President Bassirou Diomaye Faye announced on Tuesday that the profits from the nation’s new oil and gas production will be “well managed.”

This announcement comes as Senegal begins extracting oil for the first time. Australian energy company Woodside hailed this as a “historic day” and an important milestone for both the company and Senegal.

The Sangomar deep-water project, which includes both oil and gas extraction, aims to produce 100,000 barrels of oil per day.
This project is expected to generate billions of dollars and significantly boost Senegal’s economy.

Thierno Ly, the general manager of the national oil company Petrosen, declared that the nation had entered a “new era” when production started on Tuesday.

“We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation,” Ly said.

Petrosen holds an 18% stake in the project, while Woodside owns the remaining share.

President Faye, who took office in April, has been eager to renegotiate existing oil and gas deals as part of his campaign promises for reforms.

Speaking to students, he emphasized that the earnings from the oil production would be “well managed” and that an “inter-generation fund” had been established for the benefit of future generations.

Senegal’s efforts to renegotiate oil and gas contracts have caused some concern among investors, but government supporters argue that increasing the nation’s stake in these projects is crucial for ensuring that Senegal benefits from its natural resources.

Prime Minister Ousmane Sonko, a former opposition leader and a key figure in Faye’s campaign, stated that previous contracts were “unfavourable” to Senegal and would be reviewed.

“We’re the ones who promised you we’d renegotiate the contracts, and we’re going to do it. We’ve started already,” Sonko said in an address to young people.

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