Senegal: Oranto risks losing its rights to several oil blocks

Nigerian oil group Oranto Petroleum, headed by billionaire Prince Arthur Eze, is in a precarious position in Senegal, where it risks losing its oil blocks due to a lack of significant investment. The company holds a number of oil licences in Senegal, but has carried out little exploration work on these blocks, a situation that has aroused the ire of the new Senegalese authorities.

As early as November 2023, Oranto Petroleum was seeking to obtain new licences despite inactivity on those already allocated. This strategy, which was based on Prince Arthur Eze's political connections, now seems compromised under the Faye government, which favours more rigorous management of the country's oil resources.

The licences held by Oranto are due to expire shortly, and the group has not demonstrated the investment required to justify their renewal. This situation contrasts with the ambitions of Senegal, which, as it approaches the launch of its oil and gas production, is seeking to maximise the economic benefits of its natural resources.

Under President Macky Sall, Oranto had benefited from its close links with the government to secure its oil blocks. However, the arrival of Bassirou Diomaye Faye, who advocates a policy based on African integration and transparent resource management, has changed all that. The new government is closely scrutinising the oil companies' commitments, highlighting Oranto's shortcomings.

This pressure is part of a wider context in which Senegal is strengthening its oil and gas infrastructure, with projects such as increasing refining capacity and converting power stations to gas. The authorities are now demanding reliable partners capable of actively contributing to the development of the sector.

The possible loss of the Oranto blocks could pave the way for new players in Senegal's oil sector. The country, which is preparing to become a major oil and gas producer with projects such as the Grand Tortue Ahmeyim gas field, is attracting the attention of international investors. The Nigerian Upstream Petroleum Regulatory Commission, for example, recently attempted to recover under-exploited fields for reallocation, signalling a regional trend towards more dynamic resource management.

For Oranto, the stakes are high. Without a rapid financial and technical commitment, the group risks seeing its Senegalese ambitions collapse, marking a setback for one of Nigeria's most influential oil companies. With Senegal positioning itself as an energy hub in West Africa, oil companies will now have to prove their worth to stay in the race.