A public debate has been ongoing in Senegal regarding the country's energy sector, specifically the agreement with Italian company Eni for the exploitation of the Yakaar-Teranga oil and gas field. The discussion has been fueled by conflicting statements from the Ministry of Energy and Petroleum and Alioune Gueye, former Director General of PETROSEN, the national oil company. The debate centers on the prospection phase, exploration, and exploitation of the field.
According to the Senegalese Petroleum Code, prospection is defined as superficial investigations and preliminary work aimed at detecting hydrocarbon deposits. The code specifies that prospection is not an exclusive title and is limited to a depth of 200 meters. Eni and other companies, such as Exxon, have reportedly justified their lack of interest in the Yakaar field due to its atypical geological structure, which requires significant investment. In contrast, the Teranga field is considered more exploitable and closer to the Senegalese coast.
A clarification has been made regarding the decree 2026-680, which defines the blocks and their nomenclature. The former Director General of PETROSEN argued that the annex to the decree has the same legal force as the decree itself and is therefore unchangeable. However, the decree also states that the annex can be updated by the Minister of Hydrocarbons, which implies that the block boundaries are not fixed. This update can occur with the opening of new blocks or for strategic reasons.
The issue of the Yakaar-Teranga agreement has been further complicated by claims of a renegotiation, which has been disputed by some. A letter from the former Minister of Energy, Biram Souley Diop, to Alioune Gueye, dated May 15, 2026, and marked confidential, reveals that the agreement was actually a withdrawal or early termination of the contract. The letter also mentions renunciations of rights within the contract signed between KOSMOS and PETROSEN, but the details of these renunciations are unclear.
The capacity of PETROSEN to assume the role of operator on complex offshore projects has been questioned. While the company has made progress in developing its technical capabilities, particularly with the help of the National Institute of Petroleum and Gas, becoming an operator requires a long process of capitalizing on experience and expertise. The politicization of PETROSEN has also hindered the development of the company's technical expertise.
The issue of PETROSEN's operatorship is closely linked to the development of the Sangomar gas field, which has 24 wells and can produce up to 400 MW of electricity. However, two of the wells have not been exploited, and the delay in development has led to increased energy imports. A solution has been proposed to exploit these wells at a lower cost, estimated at 200-300 million euros, which could have helped meet Senegal's energy needs during the current heatwave.
The controversy surrounding the Yakaar-Teranga agreement highlights the need for greater transparency and clarity in the management of Senegal's energy sector. The government's decision to communicate the coordinates of the new blocks will help to resolve some of the issues. The development of PETROSEN's technical capabilities and the implementation of a clear strategy for the energy sector are crucial for the country's economic growth and energy security.
Key points
- The Yakaar-Teranga agreement has been the subject of conflicting statements from the Ministry of Energy and former PETROSEN Director General Alioune Gueye.
- The Senegalese Petroleum Code defines prospection as superficial investigations and preliminary work aimed at detecting hydrocarbon deposits.
- PETROSEN's capacity to assume the role of operator on complex offshore projects has been questioned, despite progress in developing its technical capabilities.
