Senegal’s government has initiated a significant move to renegotiate its oil, gas, and mining contracts by establishing a commission of experts aimed at ensuring that these resources benefit the population more effectively. Prime Minister Ousmane Sonko announced the formation of this commission, which comprises senior officials and experts in oil, mining, taxation, and economics, to reassess the contracts signed under the previous administration.
Senegal, which began oil production in June and plans to start natural gas exploitation in the second quarter of 2024, is one of the world’s least-developed countries. The nation is counting on its newfound energy resources to drive substantial economic growth. However, the current government believes that the existing contracts are unfavorable to Senegal’s strategic interests and has vowed to renegotiate them.
Prime Minister Sonko emphasized that the commission’s work will be “scientific, rigorous, and methodical,” focusing on a thorough review of the legal foundations of the existing agreements. The goal is to rebalance these contracts to better serve the national interest.
The commission’s work will begin with a review of contracts related to the Sangomar oil field, operated by Australia’s Woodside Energy, and the Grand Tortue/Ahmeyim (GTA) gas field, developed in collaboration with British BP, American Kosmos Energy, the Mauritanian Hydrocarbons Company (SMH), and Senegal’s national company Petrosen. This initiative marks a critical step in Senegal’s effort to maximize the benefits of its natural resources for its people.
