Senegal: 50 to 64% profit for the State on oil and gas contracts (Minister)

The State of Senegal will reap between 50 and 64% of the profit generated by the exploitation of oil and gas, said Friday in Saly Portdual, the Minister of Oil and Energy, Aïssatou Sophie Gladima.

At present, all the contracts signed by Senegal are online and can be consulted by all those who wish to do so, and these contracts ensure that our country has a share of between 50 and 64% of the profits that will be made in the framework of the projects underway,'' she said.

That is the truth. You only have to be able to read the contracts to see that, Aïssatou Sophie Gladima.

La ministre s’exprimait à l’ouverture d’un atelier de partage sur le secteur des hydrocarbures organisé au profit du Collectif des journalistes économiques du Sénégal (Cojes).

According to her, this workshop confirms, ''if it is still needed, the will and the commitment of the government to ensure in all transparency and responsibility, a rigorous, inclusive and sustainable management of our oil and gas resources''.

This commitment, she noted, "remains a marker of governance in the oil and gas sector even before the discovery of hydrocarbons with our country's voluntary membership in 2013 of the Extractive Industries Transparency Initiative (EITI)".

The minister recalled that the first barrel of oil from Sangomar, a project operated by Woodside with estimated reserves of about 630 million barrels, is expected in the last quarter of 2023, with a projection of 100 thousand barrels per day in the first phase of operation.

As for the GTA (Grand Tortue Ahmeyim) project, she recalled that Senegal and Mauritania agreed on an agreement signed in February 2018 in the framework of its development by BP (Bitrish Petroleum).

GTA will deliver its first gas next year with an expected production of 2.5 million tonnes of liquefied natural gas per year.

The Minister added that a third project is being studied.

This is Yakaar Teranga ''whose final investment decision should be taken soon with the hope of starting production between 2024 and 2025'', she said.

According to Aïssatou Sophie Gladima, this project will enable the effective implementation of the "gas to power" strategy, i.e. the production of electricity from gas and the development of petrochemical industries.

From these various projects, Senegal expects significant financial resources, said the Minister, recalling that they have already been the subject of a distribution law voted by the National Assembly with guiding principles such as the full budgeting of revenues from oil and gas and the establishment of an intergenerational fund to take into account future generations.

For the Minister, "the most important thing is not the new money expected from these projects. The best thing is the local content''.

The government has understood this so well that it has put in place a local content policy backed by a law that promotes the direct involvement of Senegalese companies and citizens in oil and gas operations,'' she said, stressing that the objective in this area is to reach 50% local content by 2030.

’’Les enjeux socio-économiques de ces ressources sont donc importants et interpellent les différentes parties prenantes au premier rang desquelles la presse dont l’un des rôles est de veiller à la bonne gouvernance et à la transparence durant toute la période d’exploitation des différents projets’’, a soutenu Mme Gladima.