Historic day for Senegal as they start producing oil for the first time
Senegal's President, Bassirou Diomaye Faye, has stated that profits from the sale of oil and gas will be "well managed," as the West African nation begins producing oil for the first time.
Mr. Faye, who was elected president in April, has shown a keen interest in renegotiating the deal, aligning with the reforms he promised during his election campaign.
The Australian energy giant, Woodside, described the extraction as a "historic day" and a "key milestone" for both the company and the nation.
The Sangomar deep-water project, which also includes gas, aims to produce 100,000 barrels of oil per day. It is anticipated to generate billions of dollars for Senegal and significantly boost its economy. Thierno Ly, the general manager of the national oil company Petrosen, proclaimed that the nation had entered a "new era" when production commenced on Tuesday.
Petrosen holds an 18% stake in the project, while Woodside owns the remaining shares. The Senegalese government's initiative to renegotiate oil and gas contracts has been perceived by some analysts as a cause for investor concern. However, supporters of the government assert that it is crucial for the West African state to increase its stake in such projects, ensuring that the nation reaps the benefits of its natural resources.
