President Bassirou Diomaye Faye of Senegal has emphasized the importance of well-managed profits from the sale of oil and gas as the country enters oil production for the first time.
Australian energy company Woodside has hailed this as a “historic day” and a significant milestone for both the company and Senegal.
The Sangomar deep-water project, which includes gas extraction, is targeting a daily oil production of 100,000 barrels.
This development is expected to bring in substantial revenue for Senegal and contribute to its economic growth.
Thierno Ly, the general manager of Senegal’s national oil company Petrosen, highlighted the start of production as a “new era” for the nation, presenting opportunities for growth and development.
President Faye, elected in April, has been vocal about renegotiating oil and gas deals as part of his campaign promises for reform.
He assured that the earnings would be carefully managed and mentioned the establishment of an “inter-generation fund” for the benefit of future generations.
Senegal’s move to review oil and gas contracts has raised concerns among some investors, but government supporters argue that increasing the country’s stake in projects is crucial for maximizing benefits from natural resources.
Prime Minister Ousmane Sonko, a key figure in the president’s election campaign, reiterated the commitment to renegotiate contracts signed by previous administrations, which he deemed unfavorable to the country.
He emphasized the government’s determination to follow through on its promises regarding contract renegotiation.
Source-BBC
