SENEGAL has established a commission of legal, tax, and energy experts to review and potentially renegotiate the country’s oil and gas contracts to better serve national interests. This initiative was announced by Prime Minister Ousmane Sonko on national television on Monday.
The decision follows a directive from President Bassirou Diomaye Faye, who won the presidency in a landslide victory in March. Upon assuming office, Faye ordered a comprehensive audit of Senegal’s oil, gas, and mining sectors. He also pledged to renegotiate contracts with foreign operators if they were found to be unfavourable to Senegal.
Prime Minister Sonko emphasised the government’s commitment to revisiting these contracts, stating that they aim to ‘re-examine and rebalance them in the national interest.’ The commission will be equipped with the resources necessary to conduct a thorough review, including the option to enlist international experts if needed. However, no specific timeline for the review process has been provided.
This move comes at a pivotal time for Senegal, which recently joined the ranks of oil-producing nations. In June, Australia’s Woodside Energy announced the first oil production from Senegal’s Sangomar oil and gas field. Additionally, gas production is expected to commence by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.
While details of the audit and any subsequent renegotiation plans remain undisclosed, the formation of the commission signals the government’s intent to ensure that the country’s burgeoning oil and gas sectors contribute meaningfully to national development.
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