Senegal Forms Commission to Overhaul Oil and Gas Contracts

Senegal has established a commission of legal, tax, and energy experts to review and potentially renegotiate its oil and gas contracts, Prime Minister Ousmane Sonko announced on national television Monday.

Following his victory in March, President Bassirou Diomaye Faye, who ousted the ruling coalition candidate, ordered a comprehensive audit of the oil, gas, and mining sectors. He pledged to revisit and amend agreements with foreign operators if necessary to better serve national interests.

Details of the audit and any subsequent renegotiation plans have not yet been disclosed. Sonko emphasized the government’s commitment to reassessing these agreements to ensure they align with the country’s interests. The commission will be well-resourced and may engage international experts if needed, although the timeline for the review remains unspecified.

This initiative comes on the heels of Senegal’s debut as an oil producer. In June, Australia’s Woodside Energy announced that its Sangomar oil and gas field had begun production. 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.