Senegal has officially commenced oil production, with President Bassirou Diomaye Faye assuring that the profits will be “well managed” to benefit the nation.
The historic milestone was marked by the extraction of oil from the Sangomar deep-water project, which Australian energy giant Woodside described as a “key milestone” for both the company and Senegal.
The Sangomar project aims to produce 100,000 barrels of oil per day, potentially generating billions of dollars for Senegal and significantly boosting its economy. Thierno Ly, the general manager of the national oil company Petrosen, highlighted the significance of this development, stating that Senegal has entered a “new era” of economic and social growth.
Petrosen holds an 18% stake in the project, while Woodside owns the remaining shares.
President Faye, who took office in April, has emphasised the importance of renegotiating the oil and gas contracts as part of his election campaign reforms. Addressing students on Tuesday, he reiterated his commitment to managing the oil earnings wisely and announced the establishment of an ‘inter-generation fund’ for future generations.
Senegal’s initiative to renegotiate existing contracts has raised concerns among some investors, but government supporters argued that increasing the nation’s stake in the projects was crucial for ensuring that Senegal benefits from its natural resources.
Prime Minister Ousmane Sonko, a former opposition politician and a prominent figure in President Faye’s campaign, has been vocal about the need to review the contracts signed by previous administrations. “We’re the ones who promised you we’d renegotiate the contracts, and we’re going to do it. We’ve started already,” Sonko stated in an address to young people.
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