Senegal has marked a significant milestone by achieving its first oil production, officially becoming one of the oil-producing countries in West Africa.
Last week, the country commenced oil production for the first time through the Sangomar deep-water project, with a targeted output of 100,000 barrels 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.
President Bassirou Faye 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.”
Thierno Ly, the general manager of the national oil company, Petrosen, 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.