Senegal has officially become an oil-producing country, marking a significant step in its economic development. Last week, the country began producing oil from the Sangomar deep-water project, aiming to produce 100,000 barrels of oil per day.
“This is a historic day, a key milestone for Woodside and Senegal,” said Australian energy company Woodside, highlighting the importance of the achievement.
President Bassirou Diomaye Faye assured the nation that the profits from oil and gas sales would be responsibly managed.
“We have set up an inter-generation fund for the benefit of your generation and those to come,” he stated.
Thierno Ly, the general manager of Senegal’s national oil company Petrosen, shared the president’s optimism.
“We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation,” Ly said.
The start of oil production is expected to generate billions of dollars for Senegal and boost its economy. However, the government’s decision to renegotiate existing oil and gas contracts has caused some concern among investors.
Prime Minister Ousmane Sonko, a prominent figure in the president’s election campaign, defended the decision.
“We are the ones who promised that we would renegotiate the contracts; and we are going to do it. We have started already,” Sonko said, arguing that contracts signed by previous administrations were “unfavourable” to Senegal.