Senegal announces a review of its oil and gas contracts, aiming to ensure better terms and transparency in the management of its natural resources.
The prime minister of Senegal has declared the establishment of a commission to scrutinize numerous gas and oil contracts inked with the former administration by its recent government.
Months after President Bassirou Diomaye Faye, who won a decisive victory in the March elections, announced plans to renegotiate a fishing agreement with the European Union that had been in place for ten years, Ousmane Sonko made public his declaration on national television. The announcement was aimed at addressing concerns surrounding industrial fishery and restoring marine resources as part of efforts by Faye’s administration to enhance food security within the country.
Sonko stated that the committee comprises proficient individuals in legal, tax, and energy sectors who aim to modify contracts for the benefit of the country.
After taking office in April, President Faye pledged to implement significant economic changes that would prioritize the utilization of their nation’s innate resources. One of his initial policy actions included an inquiry into ownership within the gas, oil and mining industries. As a former taxation auditor who is now 44 years old, he has maintained his determination to reassess agreements with foreign companies as deemed necessary.
Details about the audit or any plans for negotiation have not been provided by the authorities of the ex-French colony.
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On Monday, Prime Minister Sonko stated that the government’s commitment to its promise of returning to review and adjust various agreements in favor of national interests remains steadfast.
He stated that the commission established will possess ample resources to investigate the agreements and employ foreign specialists as needed.
In June, Dakar’s first offshore project commenced oil extraction by Woodside Energy from Australia. As a result of this development, the African state has now been added to the list of countries that produce oil. It is estimated that the Sangomar oil and gas undertaking will generate around 100,000 barrels per day.
By year-end, British Petroleum (BP) intends to commence gas production at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project situated on the maritime border of Mauritania and Senegal. This colossal initiative is deemed as one of BP’s most significant undertakings, producing up to 2.3 million metric tons of LNG per annum in order to satisfy worldwide demand whilst simultaneously improving economic development for both coastal African countries involved.
In the Senegalese capital of Dakar, Russian Deputy Foreign Minister Mikhail Bogdanov and President Faye met last month to converse about potential collaborative endeavors in energy production, mining operations, and mineral processing.
