Dakar — Senegal is prepared to take decisive action to protect its economic interests in the oil and gas sector. During a high-profile address at the Africa CEO Forum, Khadim Bamba Diagne, Permanent Secretary of the Strategic Committee for Oil and Gas, confirmed that the government is exploring all legal avenues—including international arbitration—to renegotiate contracts with BP and Woodside.
The move comes as Senegal seeks to address longstanding concerns over the terms of its offshore oil and gas exploitation. With contracts spanning 30 to 50 years, Diagne emphasized the urgency of correcting inequities now rather than allowing them to persist. “It’s better to fix mistakes early than let them compound over decades,” he stated.
The offshore projects directly impact Senegal’s vital fishing industry, which sustains between 600,000 and 700,000 citizens. Diagne argued that a responsible government cannot tolerate an arrangement where foreign companies reap most of the benefits while local communities bear the brunt of negative externalities. “We cannot accept a model where African nations absorb the costs while others profit from our resources,” he asserted.
The current global energy crisis, marked by soaring hydrocarbon prices, has further underscored the need for fairer terms. Diagne noted that while companies are profiting from the price surge, Senegal must secure its share. “All partners in these joint ventures must benefit from this new price reality,” he insisted.
Arbitration could establish legal precedents to guide future negotiations, ensuring clearer rights and obligations for all parties involved. With oil and gas production already underway but no defined end in sight, Diagne stressed the importance of setting robust foundations today to avoid disputes tomorrow.