Senegal Joins Oil-Producing Countries, Begins Production

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Senegal has achieved a historic milestone by officially commencing oil production, thereby joining the ranks of oil-producing countries in West Africa. The inauguration of oil production marks a significant moment in Senegal’s economic history, driven by the Sangomar deep-water project, which aims to yield 100,000 barrels of oil per day.

The commencement of oil production was celebrated as a pivotal achievement by Woodside, the Australian energy giant involved in the project, emphasizing its importance for both the company and Senegal. President Bassirou Diomaye Faye assured the nation that revenues from oil and gas sales would be prudently managed, highlighting the establishment of an inter-generational fund to benefit future generations.

Thierno Ly, the general manager of Senegal’s national oil company, Petrosen, echoed these sentiments, expressing optimism about the opportunities for growth and socio-economic development that oil production will bring to the nation.While the move is expected to inject billions of dollars into Senegal’s economy, the government’s decision to renegotiate existing oil and gas contracts has raised concerns among investors.

Prime Minister Ousmane Sonko defended this decision, citing unfavorable terms in contracts signed by previous administrations and reaffirming the government’s commitment to renegotiating these agreements for the benefit of the country.

As Senegal embarks on its journey as an oil-producing nation, the government remains steadfast in its commitment to ensuring that the country maximizes the benefits from its natural resources while fostering sustainable economic development.

Source: Daily Trust

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