Senegal sets up commission to review oil and gas contracts

DAKAR, Senegal

Senegal’s new government is taking a bold step to reassess its oil and gas contracts. Prime Minister Ousmane Sonko has announced the formation of a special commission tasked with reviewing these agreements.

This group, made up of legal, tax, and energy experts, will scrutinize existing contracts with the aim of rebalancing them in favor of Senegal’s national interests.

This move follows President Bassirou Diomaye Faye’s recent election victory and his pledge to audit the country’s oil, gas, and mining sectors.

The government is keeping its promise to the Senegalese people to re-examine these agreements and potentially renegotiate terms with foreign operators.

The timing is significant, as Senegal has just entered the ranks of oil-producing nations. The country’s first oil field, Sangomar, began production recently, marking a new era for Senegal’s economy.

Additionally, gas production is set to commence by year’s end at another major project.

While details about the audit process and any potential renegotiations remain under wraps, the government’s commitment to this review is clear. The commission will have ample resources at its disposal, including the ability to bring in international experts if needed.

This move reflects a growing trend among resource-rich African nations to ensure they’re getting fair deals from their natural resources.

As Senegal steps into its role as an oil and gas producer, the government is clearly determined to maximize the benefits for its citizens, potentially reshaping the country’s economic future.