Dakar is prepared to take bold measures to renegotiate oil contracts with major international energy firms. Khadim Bamba Diagne, Permanent Secretary of the Strategic Orientation Committee for Oil and Gas, made this clear during the Africa CEO Forum, emphasizing that no option is off the table—including international arbitration.

Why is Senegal pushing for contract renegotiation?

With oil and gas projects spanning 30 to 50 years, Diagne stressed the importance of addressing contractual discrepancies early. “It is better to correct mistakes quickly rather than let them persist over decades,” he explained. The long-term deals with BP and Woodside have drawn scrutiny, particularly as Senegal seeks to maximize benefits from its natural resources.

Balancing economic gains and local impact

Senegal’s offshore oil and gas operations directly affect the 600,000 to 700,000 people employed in the fishing industry. Diagne highlighted the need for a fairer distribution of profits, stating that an ethical government cannot permit foreign companies to extract resources while leaving local communities to bear the negative consequences. “We refuse a model where African nations absorb the costs while foreign firms pocket the bulk of the profits,” he said.

Leveraging high oil prices for national benefit

The current surge in hydrocarbon prices has intensified Senegal’s resolve. Diagne noted that while oil firms are profiting from the price hike, Senegal must also secure its share of the gains. “All partners in these joint ventures must benefit from the new pricing reality,” he insisted, underlining the urgency of renegotiation.

Seeking clarity for future oil and gas development

Arbitration could set a legal precedent, ensuring fair terms for Senegal’s resources over the coming decades. With oil and gas extraction in its early stages, the country aims to establish a solid foundation now rather than face prolonged disputes later. Diagne concluded that securing a favorable and transparent framework is critical for long-term economic stability.