Senegal has officially joined the ranks of oil-producing countries in West Africa, achieving its first oil production last week. The Sangomar deep-water project, led by Australian energy giant Woodside, aims to produce 100,000 barrels of oil per day.
“The Sangomar Field Development Phase 1 is a deepwater project including a stand-alone floating production storage and offloading (FPSO) facility with a nameplate capacity of 100,000 barrels/day, and subsea infrastructure that is designed to allow subsequent development phases,” said Woodside in a statement, highlighting the significance of this achievement.
President Bassirou Faye assured the nation that profits from the sale of the country’s oil and gas would be well managed.
“We have set up an inter-generation fund for the benefit of your generation and those to come,” he said, emphasizing the government’s commitment to prudent resource management.
Thierno Ly, the general manager of the national oil company, Petrosen, echoed the president’s sentiments, stating, “We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation.”
Despite the optimism surrounding this development, the government’s decision to renegotiate oil and gas contracts has been met with some skepticism from investors.
Prime Minister Ousmane Sonko, a key figure in the president’s election campaign, justified the move, stating,
“We are the ones who promised that we would renegotiate the contracts, and we are going to do it. We have started already.” He added that contracts signed by previous administrations were “unfavourable” to the country.
As Senegal embarks on this new era of oil production, its government remains committed to ensuring that the nation benefits equitably from its natural resources, projecting significant economic growth and development in the coming years.
