Senegal strikes black gold, begins oil production

Senegal has officially joined the ranks of oil-producing nations, heralding a new era of economic potential for the West African country. President Bassirou Diomaye Faye, who took office in April, has made significant strides by renegotiating oil and gas contracts, a key promise from his election campaign.

The Phase 1 development of the Sangomar oil field is well underway, with 21 out of 23 planned wells already drilled. This milestone has raised hopes of generating billions of dollars in revenue, transforming Senegal’s economic landscape.

In addition to the Sangomar project, Senegal is poised to start production on a significant liquefied natural gas (LNG) project at its border with Mauritania. The Greater Tortue Ahmeyim LNG project, a collaborative effort involving British energy giant BP, US firm Kosmos Energy, Mauritanian oil and gas company SHM, and Senegal’s own Petrosen, aims to produce around 2.5 million tonnes of LNG annually. Production could commence as early as the third quarter of this year.

Despite global calls to phase out fossil fuels due to their role in climate change, several African nations, including Senegal, are pushing forward with oil and gas projects. They argue that it is unjust to curtail their development when Western nations have long benefited from fossil fuel exploitation. Nonetheless, the continent faces severe climate impacts, with rising temperatures and shifting rainfall patterns threatening health, food security, and socio-economic stability.

President Faye’s renegotiation of contracts reflects his commitment to maximizing the benefits from these natural resources for Senegal’s citizens while navigating the complex landscape of global energy politics. As Senegal taps into its oil reserves, the nation stands on the cusp of a transformative economic boom, balancing growth aspirations with the challenges of sustainable development.