Senegalese President Bassirou Diomaye Faye announced on Saturday that his administration plans to renegotiate the country’s oil contracts. This move follows an audit of the oil, gas, and mining sectors, which Faye ordered after his election victory in March.
Faye, who secured a decisive win against the ruling coalition’s candidate, expressed his belief that Senegal could have secured more favourable terms in its existing contracts. “My belief is that we could have negotiated the contracts better,” he stated, highlighting the potential for improved agreements that benefit both Senegal and its foreign partners.
Senegal recently became the world’s newest oil producer following the announcement by Australia’s Woodside Energy that its Sangomar oil and gas field had produced its first oil in June. Woodside Energy holds an 82% stake in the project, while Senegal’s national oil company, Petrosen, retains an 18% interest. Additionally, gas production is set to commence by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.
In his remarks marking the 100th day of his presidency, Faye emphasised the importance of mutual benefits in the upcoming renegotiations. “There will be a renegotiation taking into account mutual benefits,” he said. “Other countries in Africa and elsewhere have negotiated better to get the maximum possible for their resources.”
Faye also pointed out the broader strategy behind renegotiating these contracts. “The strategy is how to use oil and gas resources to develop other sectors,” he explained, signalling a focus on leveraging energy resources to spur wider economic growth.
This announcement is expected to have significant implications for foreign operators in Senegal’s burgeoning energy sector. However, the specifics of the renegotiations remain undisclosed, leaving industry watchers and stakeholders awaiting further details.
