SENEGAL: President Promotes a Participatory, Multi-institutional & Collaborative Approach on Oil and Gas Revenue Management

With the utmost ambition and desire for all Senegalese people to benefit and prosper from their country’s natural resources, President Macky Sall demonstrated his determination to implement reforms to fully exploit Senegal’s hydrocarbon potential. The move to propose a framework that will mandate accountability and transparency in the management of resources to ensure that oil and gas production will be conducive and significant towards the well-being of the entire nation is a step in the right direction.

Senegal is looking towards learning from the mistakes of other African countries in an attempt to reverse the so-called, resource curse, that plagues many developing nations worldwide.

“I remain convinced that the promotion of a participatory, multi-institutional, and collaborative approach is imperative for capable governance and guaranteeing sustainable prosperity,” stated H.E. Macky Sall, President of the Republic of Senegal.

Under this new legislation, the citizens of Senegal will have a seat at the table, with civil society being placed in a position primed to play a leading role in driving the discussion surrounding the monetization of the country’s oil and gas industry. This landmark act will ensure a trickle-down economy that guarantees investments within petrochemicals, agriculture, power, gas, and transportation, thus expanding the economy and facilitating the creation of many jobs for Senegalese citizens.

While the undeniable impacts of climate change continue to be taken into consideration, Senegal is driven towards eradicating energy poverty, and notes that the development of the nation should be prioritized above all else. This will be done through oil and gas. Poised to catalyze Senegal’s economy, oil and gas exploration and production are at the forefront of providing efficient, low-cost energy solutions in accordance with the primary objectives of the Plan for an Emerging Senegal. Thus, with the country’s first oil production geared for 2023, H.E. President Macky Sall has put into place, the requisite systems necessary to strengthen the revenue from the exploration and production of hydrocarbons for the benefit of Senegalese civil society.

“We salute President Macky Sall and his team, for taking this important initiative that takes into consideration, the needs of the Senegalese population, civil society and the business community, driving Senegal to do better by learning from the mistakes of other African countries that, at the time, lacked the experience and resources to make these landmark decisions possible when it comes to transparent revenue management and accountability,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber, adding, “With the right kind of leadership, forward-thinking, and a strong civil society working in collaboration with the oil and gas sector, Senegal can ensure that the industry benefits all people.” Concluded Ayuk.

Since 2014, several important discoveries have placed Senegal at the forefront of international interest. The Sangomar oil field, located 100km south of Dakar, holds an estimated 630 million barrels of oil equivalent and is projected to produce 100,000 barrels per day during the first phase of exploitation, which is scheduled to begin in 2023. Straddling the maritime border between Senegal and Mauritania, the massive Grand Tortue Ahmeyim gas field, discovered in 2015, houses reserves estimated at more than 500 billion cubic feet of natural gas, with first production also expected for 2023, thereby positioning Senegal at a critical juncture with regards to its socioeconomic growth and sustainable development.

The Chamber will continue to work with the energy industry to support Senegal and look forward to presenting key opportunities at the African Energy Week in Cape Town 2022.