Production has begun at Senegal’s first offshore oil project, announced Woodside Energy on Tuesday, marking a significant milestone for both the country and the company. The extraction vessel is stationed approximately 100 kilometers offshore in the Sangomar oil fields, with a goal of producing 100,000 barrels of oil daily.The 2014 discovery of oil and gas reserves off Senegal’s coast sparked hopes for substantial economic transformation through potential revenue generation.
However, the newly elected government, led by President Bassirou Diomaye Faye, has committed to reassessing existing oil and gas contracts with foreign firms, deeming them unfavorable for the nation.”The management of our natural resources, constitutionally owned by the people, will be closely monitored,” President Faye declared in his inaugural address in April. He pledged transparency regarding the ownership of extractive companies and announced an audit of the sector.
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Prime Minister Ousmane Sonko reiterated this stance at a recent Dakar rally, vowing to secure a fair share for Senegal and confront multinational corporations over contract terms.Woodside Energy holds an 82% stake in the Sangomar project, with the remaining share owned by Senegal’s state energy firm, Petrosen. While Senegal’s fossil fuel output may not match that of major producers like Nigeria, Petrosen anticipates over $1 billion in annual revenue from the sector for the next thirty years.
“The initial oil from the Sangomar field signals a transformative period for our industry, economy, and most importantly, our people,” stated Thierno Ly, Petrosen’s general manager.In addition, Senegal is set to begin extraction from the Greater Tortue Ahmeyim LNG project at the Mauritania border later this year. This venture, involving BP, Kosmos Energy, Mauritanian SHM, and Petrosen, aims to produce around 2.5 million tons of LNG annually.
