One year after the first barrel of oil was extracted from the Sangomar offshore field, Senegal is consolidating its position among West Africa's oil-producing nations. Operated by Australian company Woodside Energy, the project, valued at over $5 billion, had raised immense hopes for economic transformation. However, while production has exceeded initial targets, the macroeconomic benefits have been slow to materialize.
The Sangomar field, located approximately 100 kilometers off the coast of Dakar, began production on June 11, 2024, after several delays due to operational constraints. The Léopold Sédar Senghor floating production, storage, and offloading (FPSO) platform, anchored at a depth of 780 meters, extracts both oil and natural gas. Woodside, which holds an 82% stake in the operating area (compared to 18% for the national company Petrosen), had promised a rapid ramp-up to reach a capacity of 100,000 barrels per day (bpd).
One year later, the figures are encouraging: production stands at 101,000 bpd, with a reliability rate of 99.6% according to Woodside estimates. In 2024, annual production reached 16.9 million barrels, surpassing the initial target of 11.7 million. For 2025, forecasts are for around 30.53 million barrels, confirming a "good performance" as indicated by the Senegalese Ministry of Energy, Petroleum, and Mines.
Revenues generated by oil sales in 2024 amount to approximately $950 million (equivalent to 595.5 billion CFA francs). Part of the production is now sold on the local market, marking a "historic turning point" according to the ministry, with domestic deliveries beginning in February 2025. However, these financial gains have not yet significantly changed the country's macroeconomic situation, as noted in a recent analysis. The benefits are gradually being realized, but expectations for a rapid transformation of the economy remain unfulfilled.
From the launch of the project in 2020, Woodside has been committed to following international best practices and working with the Senegalese government to maximize local benefits. These commitments include local capacity building, training programs, job creation, and the involvement of Senegalese companies in the supply chain. More than 60 communities have been involved in consultations aimed at strengthening economic opportunities.
Despite operational successes, the project is not without its challenges. Initial delays pushed back the start date, and environmental concerns, although not explicitly addressed in recent reports, remain an issue for any offshore project. Woodside says it is committed to responsible exploitation, but observers are calling for increased vigilance.
On the horizon, Sangomar could consolidate Senegal's position as an emerging producer, with subsequent phases potentially focused on gas exports. However, for the promises to be fully realized, contract renegotiation and increased transparency will be essential. As one industry expert asks: "Are the benefits really trickling down to Senegal?" A year on, the answer remains one of technical and economic optimism.