News Industry

Senegal Shifts Oil Contract Strategy, Plans Reviews and Renegotiations

Senegal Shifts Oil Contract Strategy, Plans Reviews and Renegotiations
Monday, 16 March 2026 14:36
  • Prime Minister Ousmane Sonko said Senegal will define its national strategy before selecting oil and gas partners.
  • The government has terminated several petroleum block contracts and plans to renegotiate key agreements, including the Greater Tortue Ahmeyim (GTA) gas project.
  • Senegal became an oil producer in 2024 with the Sangomar field, while the GTA LNG project began production in 2025.

The government of Senegal plans to change the way it signs petroleum contracts as it reassesses the governance of the country’s hydrocarbon sector. During a press briefing on March 12, Prime Minister Ousmane Sonkosaid the state intends to define its national energy strategy before selecting industrial partners in the oil and gas sector.

“We are no longer operating under a model where we sign concessions with partners and then meet again in 25 years,” Sonko said during the public briefing. He said the government wants to align resource development with the country’s economic priorities and energy needs.

Sonko added that the new strategy will first assess national development requirements and domestic energy consumption. Authorities will then select industrial partners that agree to operate within that strategic framework.

During the same briefing, the prime minister said the government had already terminated contracts covering “quite a number of oil blocks” since taking office.

An official statement from the prime minister’s office confirmed that several blocks are under review in addition to the Yakaar–Terangalicense, which authorities discussed for possible termination and nationalization in October 2025.

The government identified several blocks in the process of restructuring, including Djiender, Djiffer Offshore, Kayar Deep Offshore, Kayar Shallow Offshore, Saint-Louis Shallowand Rufisque Offshore.

Authorities said they are resizing these exploration areas in order to align them with international industry standards. In parallel, the government announced its intention to renegotiate contracts linked to the offshore gas project Greater Tortue Ahmeyim, which operator BPdevelops jointly with neighboring Mauritania.

“We consider that the signed contracts are excessively favorable and we intend to review their substance,” the prime minister’s office said in the statement. BP holds a 56% stakein the project alongside Kosmos Energywith 27%, Petrosenwith 10%, and SMHwith 7%.

Continuity of campaign promises

These statements come as the Senegalese authorities pursue several initiatives to review the governance of the hydrocarbon sector. In August 2024, the government created a commission to examine oil and gas contracts signed by the state. According to reports by Ecofin Agency, the commission brings together experts in law, taxation and energy to evaluate the conditions under which these agreements were concluded.

Authorities said the body will analyze existing contracts and identify potential adjustments in the interest of the state. At the same time, the government has also mentioned broader reforms to the legal framework governing hydrocarbon exploitation.

In October 2025, Senegalese authorities said they were considering legislative changes to strengthen transparency, improve revenue distribution and address new challenges linked to the country’s emerging oil and gas production.

Senegal becomes a hydrocarbon producer

Senegal recently entered the ranks of hydrocarbon producers. In June 2024, oil production began at the offshore Sangomar oil field, which Woodside Energyoperates with an 82% stake. State-owned Petrosenholds the remaining 18% interestin the project.

Earlier in March 2026, Petrosen said the project exported three crude cargoes in February 2026, totaling 2.9 million barrels sold on international markets. “The production plateau continues, confirming the strong performance of the reservoir and the facilities,”the state-owned company said.

Senegal is also developing the offshore Greater Tortue Ahmeyimgas project. The first phase of the project began production in 2025and targets annual capacity of about 2.3 million tonnes of LNG, according to BP.

The operator plans additional development phases that could raise total production capacity to more than 10 million tonnes of LNG per year, according to company estimates.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J.A de Berry Quenum

On the same topic
Prime Minister Ousmane Sonko said Senegal will define its national strategy before selecting oil and gas partners. The government has terminated...
Perseus Mining to sell Sudan gold project stake for $260 million Sale follows project delays caused by Sudan conflict Company shifts...
Ghana plans ban on imported LPG cylinders to boost local manufacturing Government upgrading state-owned Ghana Cylinder Manufacturing Company Policy...
Lucara Diamond places $350 million bonds for Botswana Karowe mine expansion Funds repay $220 million debt and cover project, interest...
Most Read
01

MTN Zambia tests Starlink satellite service connecting phones directly from space Direct-to...

Satellite direct-to-device telecoms: promise, momentum and hard limits
02

Togo parliament adopts WAEMU law against currency counterfeiting Bill defines offences including ...

Togo Passes Law to Criminalize Counterfeiting of West African CFA Franc
03

Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees,...

Airtel Africa and Deloitte: A Seven-Year Relationship, $37 Million in Fees and a Planned Handover
04

Tilenga oil project required land from 4,954 households in Uganda Over 99% of affected households...

Report details land compensation for nearly 5,000 households in Uganda’s Tilenga oil project
05

World Bank announces $137 million to boost West Africa digital economy Program expands broad...

Benin, Liberia and Sierra Leone Receive $137M to Expand Digital Access for 5.2 Million People
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.