On September 23, 2026, Senegal's President Bassirou Diomaye Faye presided over the signing of a major protocol agreement between the Société africaine de raffinage (SAR) and Turkish engineering firm Yamata. The agreement, worth nearly $3.5 billion, was signed by Mamadou Abib Diop, Director-General of SAR, and Cengiz Duyar, CEO of Yamata. The deal was signed on the sidelines of the 81st session of the United Nations General Assembly.
The partnership between SAR and Yamata involves two strategic projects that will be financed by private capital mobilized by Yamata, with no guarantee of sovereign state funding. The projects include the construction of a new giant refinery with a capacity of 4 million tons per year, which will process crude oil extracted from the Sangomar field as well as a wide range of crude oils. The project is expected to enter its final stage with the launch of detailed engineering studies.
The second project involves the modernization of the Mbao site, with an estimated investment of $300-500 million. The modernization project will involve upgrading the technology and expanding the capacity of the existing refinery. The new refinery will enable Senegal to meet its entire domestic demand for fuel and generate exportable surpluses to the rapidly growing markets in West Africa.
Senegal has been dependent on imports to meet its fuel needs, despite becoming a oil producer in 2024. The new refinery and modernized Mbao site will help the country achieve energy self-sufficiency and become a supplier to West Africa. The project is expected to have significant economic returns, create jobs, and stimulate industrialization and petrochemical development.
The project will also have a positive impact on the petrochemical sector, with the development of ancillary projects providing key inputs for agriculture, industry, and transportation. The construction phase of the project is expected to create over 15,000 direct jobs, with a strong emphasis on local content in engineering, maintenance, and industrial logistics.
The partnership between SAR and Yamata is a significant step towards achieving Senegal's energy sovereignty. The project will reduce the country's dependence on fuel imports and increase its refining capacity. The project is also expected to contribute to the growth of the national economy and create new opportunities for industrial development.
The agreement between SAR and Yamata is a major milestone in Senegal's energy sector. The project is expected to be completed in the coming years, with the launch of detailed engineering studies and construction work. The project will have a lasting impact on Senegal's energy landscape and contribute to the country's economic growth and development.
Key points
- The deal includes a $2-3 billion investment in a new refinery and a $300-500 million modernization of the Mbao site.
- The project will create over 15,000 direct jobs during the construction phase.
- The new refinery will enable Senegal to meet its entire domestic demand for fuel and generate exportable surpluses to West Africa.
