Senegal establishes commission to review oil contracts

On Monday, Senegal's Prime Minister Ousmane sonko announced that the country had set up a panel of experts in legal, tax and energy sectors to review oil and gas contracts, and to work on rebalancing them to serve national interests.

After assuming office, President Bassirou Diomaye Faye - who had defeated the candidate of the ruling coalition in a landslide win in March - ordered an audit of oil, gas, and mining sectors and promised to renegotiate contract terms with foreign operators if necessary.

Authorities haven't shared any details about the audit, or provided updates on any renegotiation plan.

Sonko stated that they would keep their promise made to the Senegalese "to revisit these agreements, re-examine and rebalance in the national interest."

He stated that the commission would have enough resources to examine the contracts, and to hire foreign experts if needed. He did not specify how long it would take to review the contracts.

Senegal's first oil production was announced in June. Woodside Energy, a company based in Australia, announced that the Sangomar oil field produced its first oil in June.

Gas production will also begin at the Greater Tortue Ahmeyim liquefied gas (LNG), operated by BP, by the end the year.

(source: Reuters)