DAKAR, April 11 (Reuters) – Senegal’s newly appointed Energy and Mines Minister announced on Thursday that the government is prepared to renegotiate oil, gas, and mining contracts following an upcoming audit. President Bassirou Diomaye Faye initiated the audit after his recent landslide election victory, underscoring that investors remain welcome in the West African nation.
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In his first public statements since assuming office last week, Birame Souleye Diop emphasized the importance of closely examining the energy and mining sectors in Senegal, particularly with the imminent commencement of oil and gas production this year.
Diop outlined the government’s agenda, which includes publishing contracts, conducting mining audits, and prioritizing the interests of the Senegalese people, with a readiness to renegotiate existing contracts if deemed necessary.
Major companies involved in Senegal’s energy sector include BP and U.S.-listed Kosmos Energy, which are leading the development of Greater Tortue Ahmeyim, Senegal’s inaugural LNG project. Additionally, Australia’s Woodside Energy holds the majority stake in Senegal’s offshore Sangomar oil and gas field, anticipated to commence oil production in mid-2024.
“We will strive to promote resources to our partners in a way that strictly aligns with the interests of the Senegalese public,” Diop affirmed during a local radio interview.
Diop’s statements indicate the Faye government’s commitment to fulfilling campaign promises, including the renegotiation of contracts with foreign operators in Senegal’s energy sector.
This shift in policy diverges from the investor-friendly approach of former President Macky Sall, whose infrastructure-driven strategy did not adequately address job creation or Senegal’s escalating cost of living.
The International Monetary Fund (IMF) projects that Senegal’s forthcoming oil and gas production will propel economic growth into double digits next year.
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