Senegal’s President, Bassirou Diomaye Faye, has assured that the profits from the newly initiated oil and gas production will be effectively managed. The commencement of oil extraction has been hailed as a significant achievement by Australian energy giant Woodside, marking a pivotal moment for both the company and the nation.
The Sangomar deep-water project, which includes gas production, aims to yield 100,000 barrels of oil per day, projecting substantial economic benefits for Senegal.
Thierno Ly, the general manager of national oil company Petrosen, expressed optimism for the nation’s future prospects, emphasizing the potential for growth and success in economic and social development. With Petrosen holding an 18% stake in the project and Woodside owning the remainder, President Faye, elected in April, has prioritized renegotiating the deal to ensure equitable benefits for Senegal. He emphasized the prudent management of earnings and the establishment of an “inter-generation fund” for the welfare of future generations.
Senegal’s efforts to review and renegotiate oil and gas contracts have stirred some investor concerns, yet government supporters assert that increasing the nation’s stake in projects is crucial for maximizing the benefits of natural resources.
Prime Minister Ousmane Sonko, a key figure in the president’s election campaign, reaffirmed the commitment to revising unfavorable contracts signed by previous administrations to better serve the country’s interests.
The government’s proactive stance on renegotiating contracts underscores its dedication to ensuring that Senegal optimally leverages its natural resources for sustainable development.
