President Bassirou Diomaye Faye announced plans to conduct a comprehensive audit of Senegal’s oil, gas, and mining sectors after his election. This decision stems from a campaign promise to renegotiate terms with foreign operators, especially as the country gears up for oil and gas production this year.
This move marks the second significant action by the Faye-led administration, with the appointment of Ousmane Sonko, an ally and mentor, as Senegal’s new prime minister.
Companies Subject to Audit:
British Petroleum (BP): BP and US-listed Kosmos Energy lead the development of Greater Tortue Ahmeyim (GTA), Senegal’s first LNG project. BP holds a 56% stake, while Kosmos Energy holds 27%.
Kosmos Energy: Kosmos Energy entered Senegal’s oil and gas industry in 2014 and holds a 90% stake in the Yakaar-Teranga gas field, one of the world’s largest gas discoveries in recent years.
Woodside Energy: Australian Woodside Energy owns an 82% stake in the Sangomar Oil and Gas Field, expected to produce 230 million barrels of crude oil in its initial phase.
Total: French energy giant Total has exploration agreements for oil and gas off Senegal’s Atlantic coast, with stakes in the Rufisque and Ultra Deep Offshore blocks.
Oranto Petroleum: Nigerian company Oranto Petroleum is exploring two oil blocks off Senegal’s coast.
Mining Sector:
Endeavour: Endeavour owns the Sabodala-Massawa gold mine, Senegal’s largest producing gold mine, acquired in February 2021.
Managem: Moroccan Mining company Managem acquired the Boto Gold Project in eastern Senegal, which is expected to commence production in the first half of 2025.
Dangote: Nigerian conglomerate Dangote operates a cement factory outside Dakar, representing a significant foreign direct investment in Senegal.
What to Know:
President Faye’s administration plans to audit and renegotiate contracts with these foreign companies. The president’s remarks on Senegal’s currency and radical ideas have made foreign investors cautious.
Oil and gas production is set to commence in Senegal this year, with the IMF forecasting significant economic growth for the country.
