Senegal’s decision to establish a commission to re-examine its oil and gas contracts has sparked calls for transparency from industry experts and stakeholders. Prime Minister Ousmane Sonko announced that the committee, which includes legal, tax, and energy experts, will review agreements to “rebalance them in the national interest.” Key assets under scrutiny include the Sangomar oil field, operated by Australia’s Woodside, and the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, managed by BP. The Natural Resource Governance Institute warns that while renegotiations could maximize state benefits, an opaque process could harm investor confidence and citizen trust. Analysts also caution that retroactive changes to contracts could damage Senegal’s reputation, potentially deterring future investments. Given Senegal is projected to have one of Africa’s fastest-growing economies in 2024, largely driven by oil and gas production, the stakes for transparent and fair renegotiations are particularly high.
SOURCE: SEMAFOR
Senegal Faces Calls for Openness in Oil Contract Talks
