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Senegal’s new President to audit the nation’s oil, gas and mining sectors 

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Senegal President Bassirou Diomaye Faye

Senegal’s newly elected President Bassirou Diomaye Faye has stated that he would conduct a thorough audit of Senegal’s oil , gas and mining sectors.  

According to Reuters, the announcement followed a campaign promise to renegotiate the terms of oil, gas and mineral resources with foreign operators in the country set to begin production of oil and gas in the country this year.  

This is the second major move made by the Faye led administration since announcing Ousmane Sonko an ally and mentor as the new prime minister of Senegal.  

We are now going to take a look at the companies which would be audited by the Faye administration. They are the major companies invested in Senegal’s Oil, gas and mining sectors.  

British Petroleum (BP)  

BP and US listed Kosmos energy are spearheading the development of Greater Tortue Ahmeyim (GTA) which is Senegal’s first Liquefied Natural Gas (LNG) project.  

GTA located at the border between Senegal and Mauritania will produce 2.3 million tonnes of LNG per year in its first phase.  

BP is the project’s operator, with a 56% stake. Kosmos Energy holds a 27% stake. Senegal, through its national oil company Petrosen, holds 10%, and Mauritania, through its SMHPM oil company, 7%.  

Kosmos Energy  

US listed Kosmos energy entered Senegal’s oil and gas industry in 2014 with the acquisition of stakes in the Cayar and St. Louis offshore blocks where the GTA is located.  

It has a 90% stake in Yakaar-Teranga gas field believed to be the world largest gas discoveries in recent years. The gas field holds about 25 trillion cubic feet of advantaged gas.  

Woodside Energy  

Australian Woodside energy has an 82% stake in Sangomar Oil and gas field. Senegal’s Petrosen owns the rest.  

The Sangomar oil field which is 62 miles south of Dakar is expected to deliver 230 million barrels of crude oil in its first phase of development.  

Total  

The French energy giants signed a deal in 2017 to explore for oil and gas off Senegal’s Atlantic coast. Under the deal Total is exploring the deepwater Rufisque and Ultra Deep Offshore blocks. It has a 90% and 70% stake in both sites respectively.  

Oranto  

Nigeria’s privately held Oranto Petroleum is exploring two undrilled oil blocks off the coast of Senegal, the Cayar Shallow, now open to farm-in partners, and the St Louis Shallow, which it entered in 2015.  

Mining  

Senegal’s mining sector is mainly driven by the pursuit of gold, phosphate and zircon. The country is also blessed with significant reserve of base metals such as Iron, copper, nickel and a significant limestone reserve.  

Endeavour  

Endeavour owns the Sabodala-Massawa gold mine which happens to be Senegal’s largest producing gold mine and have been in production for over a decade.  

The mine was acquired in February 2021 when Endeavour acquired Teranga, a small west African miner. Endeavour is currently expanding the Sabodala-Massawa mine with the addition of a new processing facility.  

Managem  

Moroccan Mining company Managem acquired Boto Gold Project in eastern Senegal last year. The project has a capacity of remitting 165,000 ounces of gold with a proven mineral reserves of 31.5 million tonnes of ore.  

The [project is still in construction phase with plant commissioning scheduled for the first half of 2025.  

Dangote  

The Nigerian Cement conglomerate has a 1.5 million tons per year factory around 60 kilometers outside Dakar. It is one of the biggest foreign direct investments by an African company in Senegal.   

What to Know  

  • These foreign companies would be audited, and contract terms renegotiated by the new Faye administration according to the President himself.  
  • Foreign Investors in the country are wary of radical ideas by the new Senegalese president after he made remarks on doing something about the French controlled CFA currency being used by the west African country.  
  • Oil and gas production are slated to start in Senegal this year with the IMF forecasting a double-digit boost for the Senegalese economy as a result of that.  

 


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