DAKAR, (Reuters) – Senegalese President Bassirou Diomaye Faye said yesterday the West African country planned to renegotiate its oil contracts, saying it could have negotiated better on the contracts.
Faye, who defeated the ruling coalition candidate in a landslide election victory in March, ordered an audit of the nation’s oil, gas and mining sectors after coming into office, and vowed to renegotiate the terms of contracts with foreign operators in the country if needed.
Referring to oil deals specifically, Faye told reporters as he marked the 100th day of his presidency.: “My belief is that we could have negotiated the contracts better.”
“There will be a renegotiation taking into account mutual benefits,” he said, without giving further details. “Other countries in Africa and elsewhere have negotiated better to get the maximum possible for their resources.”
The comments follow the announcement by Australia’s Woodside Energy WDS.AX in June that its Sangomar oil and gas field had produced its first oil, turning Senegal into the world’s newest oil producer.
The company holds an 82% participating interest in the project, while Senegal’s national oil company Petrosen has an 18% stake.
It marks the start of a new era for the country, where gas production is also due to begin by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP BP.L.
“The strategy is how to use oil and gas resources to develop other sectors,” Faye said.