Senegal has officially joined the list of oil-producing countries in West Africa with the achievement of its first oil production.
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 per 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 Petrosen, the national oil company, supported the president’s views, stating, “We have never been so well positioned for opportunities for growth, innovation, and success in the economic and social development of our nation.”
The initiation of oil production is anticipated to generate billions of dollars for Senegal and significantly bolster the country’s economy. However, the government’s decision to renegotiate existing oil and gas contracts has raised some scepticism among investors.
Prime Minister Ousmane Sonko, a prominent figure in the president’s election campaign, defended the decision, asserting, “We are the ones who promised that we would renegotiate the contracts, and we are going to do it. We have already started.” He emphasized that the contracts signed by previous administrations were “unfavourable” to Senegal.
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