Africa-Press. Senegalese Prime Minister Ousmane Sonko has announced a series of unprecedented measures targeting energy and mining contracts, saying the move aims to “rebuild state finances” and address what he described as unfair agreements. In a televised address, Sonko described gas contracts signed with the British company BP as “unfair,” stating that his government will publish a detailed document outlining the contracts under review across the energy, fisheries, and infrastructure sectors.
The Senegalese government has already taken steps including freezing the accounts of the Senegalese Chemical Industries Company, affiliated with the Indorama group, until it pays around €380 million (about $411 million) owed to the state. Authorities have also revoked 71 mining licenses, including 14 gold permits, due to companies failing to meet contractual obligations. In addition, several offshore oil and gas contracts were canceled and their boundaries redrawn in line with “international best practices.”
Sonko also revealed that negotiations over the nationalization of the Yakaar-Teranga gas project, operated by Kosmos Energy, are nearing completion. He said the state will recover the field “at no cost” within weeks. The government is also considering renegotiating the Greater Tortue Ahmeyim gas project operated by BP, though he did not provide new details about the Sangomar oil project, which began production in mid-2024.
Debt crisis and social pressures
These measures come amid a severe debt crisis, with Senegal’s public debt reaching 132% of GDP by the end of 2024, according to the International Monetary Fund, which suspended its program with Dakar after irregularities were discovered in financial data.
Domestically, the government faces protests from university students over delays in scholarship payments and strikes by teachers’ unions over wages and taxes. Authorities have announced plans to close 19 government agencies as part of efforts to reduce public spending.
Sonko said the contract review will continue throughout his term, declaring: “We are undertaking a complete transformation in the way the country’s resources are managed.” He added that the goal is to provide cheaper gas for industries and citizens alike, boosting economic growth while easing the country’s debt burden.
