Senegal has become one of the oil producing countries in west Africa and by extension the world after achieving its first oil this last week.
The country began producing oil for the first time last week, with the Sangomar deep-water project aiming to produce 100,000 barrels of oil per day.
“The Sangomar Field Development Phase 1 is a deepwater project including a stand-alone floating production storage and offloading (FPSO) facility with a nameplate capacity of 100, 000 barrels/day, and subsea infrastructure that is designed to allow subsequent development phases.
“This is a historic day, a key milestone for Woodside and Senegal,” said Australian energy giant, Woodside while highlighting the significance of the achievement.
However, President Bassirou Faye has assured the nation that profits from the sale of the country’s oil and gas would be well managed, stating, “We have set up an inter-generation fund for the benefit of your generation and those to come.”
Moreso, the general manager of the national oil company Petrosen, Thierno Ly, has echoed the president’s sentiments, saying, “We have never been so well positioned for opportunities for growth, innovation and success in the economic and social development of our nation.”
The move to begin oil production is expected to generate billions of dollars for Senegal and boost the country’s economy. However, the government’s decision to renegotiate oil and gas contracts has been met with some scepticism from investors.
Prime Minister, Ousmane Sonko, a key figure in the president’s election campaign, justified the move, saying, “We are the ones who promised that we would renegotiate the contracts, and we are going to do it. We have started already.”
He added that contracts signed by previous administrations were “unfavourable” to the country.
As Senegal begins this new era of oil production, its government remains committed to ensuring that the nation benefits from its natural resources.