Senegal sets up a commission to review oil and gas contracts and agreements

Senegal's Prime Minister, Ousmane Sonko, recently announced the creation of a Contract Review Commission, a strategic body set up by the government to scrutinize agreements with foreign companies operating in the key oil and gas sectors. This initiative is part of a drive to strengthen Senegal's economic sovereignty and ensure that the country's natural wealth is exploited in the exclusive interest of the Senegalese nation.

The Contract Review Commission will be made up of senior Senegalese government officials, accompanied by a team of recognized experts in various critical fields such as law, taxation, economics and energy regulation. The task force's mission will be to ensure that contracts awarded to foreign companies meet the highest standards and maximize benefits for Senegal. By carrying out a rigorous evaluation of current contracts, the commission will identify possible points of renegotiation to enhance the economic and social benefits for the country.

This follows on from commitments made by Senegalese President Bassirou Faye, who upon taking office in March 2024 promised to review the terms of agreements with foreign operators. At the time, the Head of State ordered an exhaustive audit of the oil, gas and mining sectors, with the aim of correcting any imbalances that might exist in current contracts and ensuring that Senegal derives maximum benefit from its natural resources.

The creation of this commission comes at a crucial time for Senegal, which recently achieved a historic milestone by producing its first barrel of oil from Woodside's Sangomar project in June 2024. This major development puts the country on the map of oil producers, strengthening its influence in the global energy sector. Senegal is also preparing to take its first steps into natural gas production with the Greater Tortue Ahmeyim project, led by bp and Kosmos Energy, scheduled for first extraction by the end of 2024. These advances underline the urgency and importance of revising existing agreements to ensure that the spinoffs from these projects fully benefit Senegal's economic and social development.