Senegal Begins Review Of Oil And Gas Contracts With Foreign Companies To Regain Control Of Resources

Senegalese Prime Minister Ousmane Sonko announced the creation of a commission tasked with reviewing and renegotiating contracts with foreign companies, which critics argue have historically favoured international interests over Senegalese benefits.

This move by the Senegalese government aims to regain control over its natural resources; it is part of the government’s broader effort to ensure that the nation’s newly discovered energy wealth benefits its citizens the most. During his campaign, President Bassirou Diomaye Faye had promised to audit and renegotiate contracts in critical sectors. This recent move by his government is a step in that direction.

The commission, officially established Monday, comprises experts in law, taxation, and the energy sector. It will review contracts in Senegal’s oil, gas, and mining industries and identify areas where terms can be improved in favour of the national interest.

The commission was also given the authority to seek additional foreign expertise if necessary.

Sonko did not mention how long the commission’s review would take.

In addition to the contracts’ review, Sonko revealed plans to restructure and reconfigure the Port of Dakar.

Earlier this year, Senegal began oil production for the first time. The review commission, therefore, could not have come at a better time as their work would provide a firm footing for Senegal in its oil and gas dealings with foreign companies.

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