Senegal’s newly elected President, Bassirou Diomaye Faye, has announced plans to review agreements signed with oil, gas, and other resource companies to ensure that they are optimized for the benefit of the state. Faye stated that the government will conduct an audit of the mining, gas, and oil sectors with the goal of strengthening local content protection for the national private sector. He emphasized that the exploitation of natural resources, which belong to the people according to the constitution, will be a key priority.
These comments indicate that Senegal may aim to take more control of its growing industry, which is expected to boost the country’s economy significantly. Senegal is on track to open the $4.8 billion Grand Tortue Ahmeyim liquefied natural gas project, led by bp Plc and Kosmos Energy Ltd., as well as the Sangomar oil development by Woodside Energy Group Ltd. These projects have faced delays but are projected to drive economic growth by more than 8% in 2024 and over 10% in 2025.
Despite these plans for greater control, Faye reassured foreign investors that Senegal welcomes their contributions. He stated that Senegal remains open and welcoming to all partners and friendly countries, and will continue to nurture these relationships while focusing on optimizing agreements in the oil, gas, and mining sectors for the benefit of the nation. The president’s statement shows that Senegal is determined to balance its desire for greater control with its need for foreign investment in order to fully realize its potential as an emerging economy in West Africa.
