Senegal Joins the Oil Producers’ Club

Senegal officially joined the ranks of oil-producing nations, with the extraction of the first barrels from the Sangomar field off the coast of Dakar on June 10. This $5 billion project aims to produce 100,000 barrels per day. Ameth Guisse, CEO of Maak Petroleum Company, believes this will reduce energy costs and boost competitiveness.

However, there are concerns regarding the exploitation contracts. Currently, Australian company Woodside owns 82% of the Sangomar field, while Senegal holds an 18% stake, with profits for Senegal ranging between 15% and 40%. Senegalese economist Ousmane Dieng highlights that the revenue from oil production could support double-digit economic growth and fund local initiatives. He emphasizes the importance of strategic public policy to ensure these benefits are realized.

Dieng also stresses the importance of quickly expanding local refining and production capacities to effectively reduce energy costs. The Sangomar field is projected to generate over $1 billion annually for Senegal for the next thirty years. Additionally, the Greater Tortue Ahmeyim project aims to produce 2.5 million tons of LNG annually along the Mauritania border. These developments signify a major economic shift for Senegal, promising substantial growth and new opportunities.

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