Senegal’s Rising Petroleum Industry Incurs Additional Investments

As one of Africa’s top emerging natural gas producing markets, the Senegalese government has taken a proactive approach to ensure an attractive and enabling environment for investors, promoting energy diversification and expansion, and driving significant levels of investment into the sector. Due to demonstrated political will, Senegal has seen accelerated progress in recent years across the entire energy sector value chain, with investment deals, project stage completions, and asset sales and acquisitions constantly expanding both the oil and natural gas industries. The sector’s growth and development can be attributed to the role that international oil companies (IOC) have played thus far, but it is the efforts made by the state and its entities that have and will continue to be the driving force of the country’s success.

At the forefront of the industry is the Ministry of Petroleum, led by H.E. Minister Aissatou Sophie Gladima. With a mandate to sustainably exploit the country’s significant resources – estimated at 450 billion cubic feet of natural gas and over 1 billion barrels of oil reserves – in a way that the Senegalese people and overall economy benefits, the Ministry has made considerable efforts to enhance development. The Ministry has been a pioneer of Senegal’s natural gas industry, incentivizing exploration and production and paving the way for IOC’s headway in projects such as the $4.8 billion Greater Tortue Ahmeyim project and the $4.6 billion Sangomar project. H.E. Minister Gladima has been instrumental in this regard, and has gone even further to promote integration and collaboration, emphasizing the role that a multi-stakeholder approach has in driving Senegal’s energy future.

Accordingly, through joint efforts by organizations including the national oil company, Petrosen, and COS-Petrogaz, Senegal is on a path towards enhanced and multi-sector energy sector success. The Ministry leads and works collaboratively with these entities to drive progress, and the success of this strategy has been well noted. Petrosen, for example, which has a participating interest in all upstream commercial hydrocarbon activities in the country, has been a driving force of oil and gas exploration and production. Led by Managing Directors Mamadou Faye and Joseph Medou, Petrosen is working hard to position Senegal as a regional gas hub. One of the primary factors owing to the organization’s success has been its emphasis on regional cooperation. Senegal’s largest project lies on the maritime border between Senegal and Mauritania, and therefore, both the Ministry and Petrosen have been working closely with its neighbor to drive development. Senegal’s energy sector success, therefore, will be largely attributed to the country’s willingness to collaborate both domestically and regionally.

Meanwhile, as the agency charged with leading, coordinating, and monitoring the development of oil and gas projects in Senegal, COS-Petrogaz, in collaboration with both the Ministry and Petrosen, has been a defining figure of the country’s energy sector success and advancement. The organization has played a significant role in advancing the country’s position as a Gas Mega Hub, utilizing regional cooperation and market-driven policies to drive growth. Led by Permanent Secretary Ousmane Ndiaye as well as Deputy Permanent Secretary Mamadou Fall Kane, COS-Petrogaz is facilitating the necessary policies and streamlined processes to drive the country’s energy sector transformation.

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