Senegal has commenced oil production for the first time, with President Bassirou Diomaye Faye assuring that profits from oil and gas sales will be “well managed.”
The landmark extraction was hailed as a “historic day” by Australian energy giant Woodside, marking a significant milestone for both the company and Senegal.
The Sangomar deep-water project, which includes gas reserves, aims to produce 100,000 barrels of oil daily. This venture is projected to generate billions of dollars for Senegal, significantly bolstering its economy.
Thierno Ly, general manager of the national oil company Petrosen, declared the start of production on Tuesday as the dawn of a “new era” for the nation.
“We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation,” he stated. Petrosen holds an 18% stake in the project, while Woodside owns the remainder.
President Faye, elected in April, has prioritized renegotiating the project deal as part of his promised reforms.
Addressing students on Tuesday, he emphasised the responsible management of earnings, noting the establishment of an “inter-generation fund” to benefit current and future generations.
Although Senegal’s initiative to renegotiate oil and gas contracts has caused some investor concerns, government supporters argue it is crucial for increasing the nation’s stake in its natural resources.
Prime Minister Ousmane Sonko, a former opposition leader instrumental in Faye’s campaign, recently asserted that previous contracts were “unfavourable” and would be reviewed.
“We promised you we’d renegotiate the contracts, and we’re going to do it. We’ve started already,” he affirmed in a speech to young people on Tuesday, according to reports.
