Senegal is preparing to join the club of hydrocarbon-producing countries with the Sangomar, GTA and Yakaar-Teranga projects. But this new era raises an essential question: are we simply going to exploit or are we going to transform in a sovereign way?
In this ninth issue of the newsletter Sénégal 2050 & Souveraineté, co-written with Pape Babacar Thiam, Civil Engineering Engineer (Geotechnical speciality || Roads (dimensioning of paving stones) || Stability of residues || Certification on VAT applicable to oil and gas operations), we offer a strategic reflection on the place of energy in the construction of a sovereign, industrial and sustainable state.
This article analyses seven fundamental pillars:
- industrial sovereignty driven by energy ;
- the use of gas and oil for the local economy;
- local content as a driver of change ;
- the transition to a diversified energy mix (gas, typha, solar, etc.);
- environmental governance and transparency ;
- social inclusion and public acceptability ;
- and budgetary trade-offs around debt, subsidies and the future.
Oil can enrich a country or trap it. It all depends on strategy.
INTRODUCTION : Energy sovereignty, a multidimensional challenge
Energy independence is a crucial challenge for African countries like Senegal. It determines our ability to pursue a coherent industrial policy, to process our raw materials locally, to stabilise our public finances and to strengthen our geostrategic influence.
Senegal, in the midst of political and economic transformation, is preparing to exploit its oil and gas resources (Sangomar, GTA, Yakaar-Teranga). But without a clear strategy, transparent governance or rigorous budgetary and environmental planning, this windfall can quickly become a trap.
World history teaches us that energy (oil, gas, electricity) has always been at the heart of any economic transformation: from France during the Trente Glorieuses to contemporary China. Why shouldn't Senegal, in turn, transform this resource into an engine of sovereignty?
1. Energy at the heart of industrial sovereignty
Energy has always been the basis of any real sovereignty. In developed countries, industrial transitions have been made possible by massive access to abundant, cheap energy. Oil, in particular, played a decisive role in the Thirty Glorious Years in Europe and Japan, and more recently in the industrial expansion of countries such as China and India.
In Senegal, the story is quite different. Despite its chronic dependence on oil imports, the country has often suffered the fluctuations of the world market without being able to counter them with a structured energy strategy. Massive subsidies to SENELEC, the high cost of electricity for households and businesses alike, and the absence of a sustainable energy industrial policy have long held back development.
With the discovery of fields such as Sangomar, GTA or Yakaar-Teranga, Senegal is entering a new era. But oil and gas do not automatically guarantee energy sovereignty. Everything will depend on how these resources are exploited, developed and integrated into a long-term vision.
Three levers are essential:
1.1 Planning a national industry supported by energy
Natural gas, if used to produce electricity at low cost (via gas-to-power), could support sectors such as agro-industry, cement works, the steel industry and local chemicals. This presupposes territorial anticipation: where should the power stations be located? How can they be connected to production areas?
1.2 Developing national sovereignty infrastructures
Pipelines, LNG terminals, storage and liquefaction units, and refining infrastructure need to be thought out with a national logic. The example of the Dangote refinery in Nigeria shows that an African player can integrate the entire energy value chain and move away from an all-import approach. Senegal, on the other hand, is still dependent on a refinery that needs to be modernised (SAR), and its expansion must be a strategic objective.
1.3 Securing access to energy for territories
Energy sovereignty is not just about operating figures. It must be translated into concrete action by lowering production costs for local businesses, securing supplies for households, and reducing inequalities between Dakar and the regions.
2. Strategically developing Senegal's oil and gas resources
Senegal, with the entry into production of fields such as Sangomar, GTA (Grand Tortue Ahmeyim) and soon Yakaar-Teranga, is embarking on a new era: that of a hydrocarbon-producing country. But being a producer does not automatically mean being sovereign.
The key lies in the State's ability to develop this resource over the long term, guarantee a fair distribution of revenues, structure local industries and secure national energy independence.
2.1 Contracts to be secured and monitored
The first battle for sovereignty is being fought in the production sharing and field management contracts. The agreements signed with Woodside (Sangomar) and BP (GTA) will have to be rigorously monitored: transparency on oil costs, control over taxation, audit of sharing mechanisms.
<PETROSEN, the armed wing of the State, has a crucial role to play. But it needs skills, resources and decision-making autonomy, without political pressure or red tape. Setting up an independent public reporting system (inspired by the EITI) is a basic requirement.
2.2 The strategic case of Yakaar-Teranga: priority to the national market
The Yakaar-Teranga gas field represents one of the biggest gas potentials in West Africa. Unlike GTA, which was designed for export via LNG, Yakaar-Teranga's priority is to supply the domestic market: power generation, industrialisation, supplying industrial areas and developing domestic gas.
This strategic direction is all the more essential as it will enable :
- Reduce the national energy bill;
- Reduce subsidies to SENELEC ;
- Favour a local productive fabric capable of exporting processed goods.
2.3 L’enjeu des infrastructures souveraines
Without efficient national refinery, Senegal risks continuing to export crude oil in order to import refined fuel at high cost. It is therefore strategic to:
- Modernising the SAR or setting up a new refining unit;
- Develop a national pipeline network to secure distribution ;
- Set up a modern gas terminal connected to industrial zones and regional energy hubs.
2.4 Managing flows, creating value
Adding value to oil and gas is not just about collecting royalties. It's organising intelligent local transformation, ensuring that :
- financial flows are stabilised (sovereign wealth funds, fair taxation of extractive industries),
- energy flows primarily serve the national economy (priority to local energy),
- and that skills flows are national (local training, not systematic outsourcing).
3. Local content and economic sovereignty
Energy sovereignty cannot be decreed. It is built from the ground up, with women, men, local businesses, training courses, mastered technological tools... Oil or gas can enrich a country or make it more dependent. The difference lies in what the country chooses to do with its resources.
The local content is precisely this mechanism that enables a volatile rent to be transformed into richness permanently anchored in the national fabric. It is also one of the most concrete indicators of the real level of sovereignty.
3.1 An ambitious but still fragile law
In 2019, Senegal will have its own local content law in the hydrocarbons sector. It aims to :
- Reserve a share of contracts for Senegalese companies,
- Promoting local employment in oil and gas projects,
- Strengthen skills and technology transfers,
- Create specialized training centers.
But implementation remains unevenand sometimes slow. The lack of preparation on the part of local SMEs, the complexity of the requirements of international operators, and the absence of clear control or sanction mechanisms undermine the impact of the law.
3.2 Training, integration, empowerment
Energy sovereignty requires a high level of technical skills: petroleum engineering, geophysics, regulations, offshore logistics, industrial environment... We must therefore :
- Strengthen university and technical facilities (e.g. ISEP, UGB, IST);
- Financing skills training for young people in farming areas;
- Promote professional integration in the sector's subsidiaries and subcontractors.
A targeted integration strategy for young people and womenThis, particularly in support activities, logistics chains and maintenance professions, would enable greater social acceptability and a fairer distribution of value.
3.3 Senegalese SMEs: players or outsiders?
Today, hydrocarbon-related markets are largely captured by multinationals. Local SMEs often struggle to meet standards, deadlines and financial requirements.
It is therefore urgent to :
- Create a development fund for mining SMEs,
- Set up a referencing, certification and support platform,
- Developing specialized incubators in oilfield services (logistics, engineering, auditing, safety, etc.).
The objective is clear: building a senegalese oil and gas economynot dependent on foreign players, but integrated, resilient and competitive.
4. Energy transition and diversified mix: between gas and renewables
Energy transition is not a luxury for Senegal. It is a strategic necessityat the crossroads of three imperatives:
- Securing supply and energy independence in the medium term;
- Reduce subsidies and costs which weigh heavily on the national budget;
- Meeting climate commitments as part of the Paris Agreement and the JETP (Just Energy Transition Partnership).
The gas windfall offers an opportunity, but it must not delay the shift to a cleaner, more diversified and more inclusive mix.
4.1 Natural gas as a transitional solution
Gas exploitation through the model gas-to-power can :
- Stabilize electricity production,
- Reduce costs for households and industries,
- Enable the gradual phase-out of heavy fuel oil.
The project Yakaar-Teranga is therefore crucial for supplying modern, low-emission thermal power plants and supporting industrial sectors. However, gas must not become a new point of dependence its role must be that of a bridge between oil and renewables.
4.2 Typha: a Senegalese innovation with underestimated potential
One of the most innovative contributions of Pape Babacar Thiam's text is its emphasis on the typha's energy potentialan invasive plant that proliferates in wetlands. Rather than seeing it as a nuisance, he proposes to :
- exploit it to produce biofuel,
- turn it into green coal or industrial briquettes,
- integrate this sector into territorial development clusters.
This circular recovery model is doubly virtuous: it creates clean energy and local jobs, while restoring the ecosystems affected.
4.3 Renewable energies: solar, wind, green hydrogen
Senegal's solar and wind energy potential is considerable. Projects such as Taïba Ndiaye (wind power) or solar power plants from Kahone, Bokhol and Malicounda are already in place. But their weight in the mix remains marginal (less than 20 %).
You need :
- Remove regulatory and logistical obstacles,
- Strengthen storage and distribution infrastructures,
- Integrating solar projects into local development strategies,
- Explore prospects for green hydrogen production from renewable resources.
4.4 A coherent, connected strategy
The transition can only succeed if :
- projects are thought out in a mix rather than a substitution logic ;
- institutions are coordinated around a clear transition plan ;
- natural resources (gas, sun, biomass, wind) are territorialized.
Senegal's energy mix must not be imposed by donors or marketsbut built on a rationale of resilience, spatial justice and sovereignty.
5. Governance, environment and transparency: pillars of sustainability
Energy sovereignty cannot be dissociated from a a solid and responsible governance framework. Oil and gas are not just resources: they are litmus tests for democracy, environmental justice and the ability of institutions to manage power.
"Without governance, there is no sovereignty. And without sovereignty, rent becomes a curse."
This is what the history of Nigeria, Angola and Venezuela teaches us.
5.1 Flaring, methane and pollution: the hidden face of profit
The exploitation of hydrocarbons entails significant environmental externalities:
- emissions of methane, a greenhouse gas 80 times more potent than CO₂ ;
- flaring of natural gas at sea, a major cause of waste and pollution ;
- risks of oil spills, contamination of groundwater and fish stocks.
Senegal must equip itself with emission reduction technologiesand impose strict standards on operators: capture, reinjection, local valorization.
5.2 A renewed legal framework: the Environmental Code 2023
The new Environmental Code, adopted in 2023, offers an opportunity:
- provide a framework for environmental impact assessments (EIA),
- introduce a environmental atlas of operating areas,
- strengthen citizen control over energy projects.
But legislation alone is not enough. We need capable, independent institutions with real resources.
5.3 Transparency and citizen control: towards a strategic State
Senegal's participation in the Extractive Industries Transparency Initiative (EITI) is an achievement that needs to be consolidated. It must be extended by :
- a public mining and energy cadastre,
- a system of regular, accessible, intelligible reporting,
- alert, control and monitoring platforms open to civil society.
The COS-PETROGAZa coordinating body, would benefit from being transformed into a independent authority with powers of investigation, assessment and sanctionaway from partisan pressures.
5.4 Governing energy as a common good
Beyond contracts and figures, the stakes are simple:
govern oil and gas in the same way we govern water, health and education: as a public good.
This requires a ethical, intergenerational and localized approachwhich puts transparency, accountability and planning at the heart of the energy pact.
6. Social inclusion and acceptability: towards shared sovereignty
Energy sovereignty is not just a matter of geopolitical autonomy or reducing imports. It is judged on the scale of citizens What they perceive, what they experience, what they receive.
And therein lies a dangerous paradox: a country can produce oil... and see its citizens distrust it, or even turn away from it, for lack of information, fairness or tangible benefits.
6.1 Avoiding pre-curses through social transparency
Even before the first drop of Senegalese oil is extracted, signs of impatience, mistrust or resignation appear.
Why?
- Because people are not sufficiently informed on projects, contracts and expected benefits.
- Because extraction areas have yet to see the benefits promised.
- Because expectations are high, but promises remain vague.
A national effort to promote education and transparency is essential to maintain social cohesion and public support.
6.2 Involving communities in development projects
The regions of Saint-Louis, Cayar, Bargny, and tomorrow Rufisque or Joal are in the front line.
But what do the fishermen, craftsmen, shopkeepers and young people in these areas know about the projects underway?
Senegal must :
- Systematically integrate participatory local development plans around the deposits,
- Set up community development fund financed by extractive revenues,
- Create territorial monitoring and assessment committeesincluding elected representatives, local leaders, women, young people and civil society.
6.3 Local employment: from hope to reality
The question of employment is central to acceptability.
But we need to avoid grandstanding and lay the foundations for a real strategy:
- Identify short-term job opportunities security, maintenance, logistics, cleaning, catering...
- Provide targeted and certifying trainingadapted to future projects,
- Guaranteeing a minimum quota for local recruitment in contracts,
- Encouraginglocal entrepreneurship in associated services.
Without employment, there will be no membership. Without membership, there will be no stability.
6.4 Sovereignty as a social contract
Sovereignty cannot be technocratic. It must be experienced as a pact between the state and its people.
This implies :
- regular opportunities for dialogue,
- mediation tools in the event of tension,
- and a an inclusive vision of energy developmentthat goes beyond numbers to embrace the human.
7. Fiscal challenges, debt and strategic trade-offs
Oil and gas are often seen as a magical solution to budgetary problems. But in reality, they can also aggravate imbalances without rigorous governance and transparent arbitration.
The real challenge is not to receive money, but to manage it lucidly and with future generations in mind.
7.1 The early debt trap
Since the announcement of the discoveries, Senegal has taken out numerous loans on the international markets, sometimes at high rates, by anticipating future income that is not yet guaranteed.
This gamble presents two risks:
- If income is lower than forecast, debt becomes unsustainable.
- If budget priorities are not clearly established, resources can be squandered without structural transformation.
7.2 Subsidies, privatization, difficult trade-offs
The energy sector is one of the most subsidized. Billions are spent every year to amortize the cost of electricity. In this context :
- Should we continue to support SENELEC without in-depth reform?
- Should certain strategic segments be privatized?
- Should oil revenues be allocated to debt or productive investment?
These choices must be decided collectively and transparently.
7.3 A sovereign and intergenerational fund: a condition for stability
Like Norway, Botswana and Ghana, Senegal is set to create a dual-purpose sovereign wealth fund :
- Stabilize public finances in the short term (support budget),
- Investing in the future: education, health, research, infrastructure.
A intergenerational fundbacked by strict rules and independent governance, would be a guarantee of trust, transparency and justice between the generations.
CONCLUSION: For real, fair and sustainable energy sovereignty
Oil and gas are neither an end nor a miracle. They are a means to an end.
Their management will be the ultimate test of our ability to plan, include, govern and innovate. Because it's not enough to exploit a resource to make a profit: you also have to manage its economic, social, environmental and political effects.
This text, co-written by an expert in the field and a strategic planner, calls for a transition towards a energy intelligence :
- energy designed to support an industrial vision,
- planned, fair and transparent revenue management,
- an ecological transition adapted to local realities,
- territorialized, shared, inclusive sovereignty.
Senegal has a historic window of opportunity not to be missed. It can become a african model for sovereign and sustainable management of energy resources. But it will only become so by placing ethics, strategy and justice at the heart of public action.
| @Thierno DIALLO
Geographer, Expert in Planning - Development - Resettlement
|
@ Pape Babacar Thiam
Civil Engineer (Geotechnical specialization || Roads (pavement design) || Residue stability || VAT certification for oil and gas operations) |