Senegal is preparing to take legal action against major oil corporations BP and Woodside Energy to secure fairer terms for its hydrocarbon resources. Khadim Bamba Diagne, Permanent Secretary of the Strategic Committee for Petroleum and Gas (COS-Pétrogaz), confirmed this decisive stance during the recent Africa CEO Forum in Dakar.
Speaking to reporters on May 14, Diagne emphasized that Dakar is prepared to pursue all available avenues, including international arbitration, to revise contracts signed with these energy giants. The contracts, spanning 30 to 50 years, require immediate attention to correct any unfavorable terms before they become permanent, he stated.
Senegal’s offshore oil and gas fields, which support between 600,000 and 700,000 workers in the fisheries sector, are a key consideration. Diagne argued that a responsible government cannot allow foreign companies to extract resources while externalizing costs to local communities. “We cannot accept an arrangement where the nation bears the burden while others reap the profits,” he asserted.
The current global energy crisis, marked by soaring hydrocarbon prices, has intensified Senegal’s resolve. Diagne noted that while international firms are profiting from high prices, Senegal must also benefit proportionally. “All partners in the joint ventures must gain from this price surge. We are not asking for charity; we are demanding equity,” he emphasized.
Arbitration would set a legal precedent, clarifying the rights and obligations of both parties for decades to come. With oil production underway and an uncertain end date, establishing robust contractual foundations is critical. Diagne underscored the need for transparent agreements that align with Senegal’s long-term economic and social objectives.