Senegal has reached a historic moment as it commences oil production for the first time, accompanied by President Bassirou Diomaye Faye’s commitment to ensuring transparent handling of revenues from oil and gas sales.
The commencement of extraction has been celebrated by the Australian energy giant Woodside as a landmark day for both the company and the nation.
The Sangomar deep-water project, which also encompasses gas reserves, aims to produce 100,000 barrels of oil per day, with anticipated significant contributions to Senegal’s economy.
Thierno Ly, the general manager of Petrosen, views this development as the dawn of a new era for Senegal, emphasizing the prospects of growth and innovation. President Faye, elected in April, has pledged to renegotiate contracts to secure benefits for future generations, including the establishment of an inter-generational fund.
While concerns may arise among investors regarding contract renegotiations, government supporters argue that it is imperative for Senegal to maximize gains from its natural resources.
Prime Minister Ousmane Sonko echoes this sentiment, reiterating the government’s commitment to revising past contracts to better align with the nation’s interests.