Senegal Establishes Commission to Review Oil and Gas Contracts.
Senegal has formed a commission of experts in legal, tax, and energy sectors to reassess its oil and gas contracts with the goal of rebalancing them in favor of national interests. This initiative was announced by Prime Minister Ousmane Sonko on national television on Monday.
The establishment of this commission follows President Bassirou Diomaye Faye’s decision to audit the oil, gas, and mining sectors after his landslide victory in the March elections. President Faye has committed to renegotiating terms with foreign operators if the audit reveals that current contracts are not favorable to Senegal.
Prime Minister Sonko emphasized the government’s dedication to fulfilling its promise to the Senegalese people by revisiting these agreements to ensure they serve the national interest. The commission has been provided with ample resources to thoroughly investigate the contracts and is empowered to hire international experts if needed. However, no timeline was provided for the completion of this review.
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This development comes shortly after Senegal began producing oil for the first time. In June, Australia’s Woodside Energy announced the first oil production from the Sangomar oil and gas field. Additionally, gas production is expected to commence by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.
