Senegal’s new government has taken a decisive step towards reasserting its control over its valuable natural resources. Following an election promise to revisit existing agreements, Prime Minister Ousmane Sonko announced the formation of a commission of experts tasked with “rebalancing” oil and gas contracts.
The move comes at a pivotal time for Senegal, a West African nation that recently joined the ranks of oil producers and is poised to begin producing natural gas by the end of the year. However, the new administration argues that contracts signed by the previous government were disadvantageous to the country’s interests.
President Bassirou Diomaye Faye, who campaigned on a platform of radical reform, had declared an audit of the oil, gas, and mining sectors as a top priority. Sonko echoed this sentiment, stating, “We regretted and vigorously condemned the way in which agreements and conventions were concluded, most of the time to the detriment of the strategic interests of Senegal and its people.”
The commission, comprising high-ranking government officials and experts in relevant fields such as oil and mining, taxation, and economics, will meticulously review the agreements. Sonko emphasized the need for a thorough and scientific approach, stating, “The logic is to work scientifically, rigorously and methodically on all aspects of these agreements. The first exercise will be to review these agreements in the light of the various legal bases on which they are based.”
The move to rebalance contracts comes as Senegal embarks on a new chapter in its economic development, with the Sangomar offshore oil field, operated by Australian group Woodside Energy, already generating production. The country is also poised to benefit from the Greater Tortue Ahmeyim (GTA) liquefied natural gas field, shared with Mauritania, which is expected to begin production later this year. This joint venture, led by British energy giant BP, American company Kosmos Energy, the Mauritanian hydrocarbons company SMH, and the Senegalese state-owned Petrosen, holds immense potential for both nations.
The commission’s work is expected to have significant implications for Senegal’s economic future, ensuring that the country’s natural wealth benefits its citizens and contributes to sustainable development.
