A heated debate has been ongoing in Senegal regarding the Yakaar-Teranga oil and gas project, with the Ministry of Energy and Petroleum at odds with Alioune Gueye, the former director-general of PETROSEN. The discussion centers on the project's agreement with Italian energy company Eni. Gueye's initial comments on the agreement have been criticized for lacking technical understanding. According to Senegal's petroleum code, prospection is a preliminary phase that involves superficial investigations to detect potential hydrocarbon deposits.
The petroleum code defines prospection as "superficial investigations and preliminary general recognition works aimed at detecting indices of existence of hydrocarbon deposits." This phase is distinct from exploration and exploitation. Gueye's criticism of Eni's involvement has been questioned, as the company has reportedly justified its limited interest in the Yakaar/Teranga field due to its complex geology, which requires significant investment. Many operators have advised focusing on the Teranga part of the field, which is closer to the Senegalese coast and more technically feasible for local supply.
A clarification on the decree 2026-680 has also been made, as Gueye argued that the decree fixes the boundaries and nomenclature of the blocks, including the one where Yakaar/Teranga is located. However, the decree's article 4 states that the annex can be updated by the minister in charge of hydrocarbons, allowing for changes to the block boundaries. This contradicts Gueye's assertion that the annex has the same legal force as the decree and is therefore immutable.
The issue of contract renegotiation has also been addressed, with Gueye claiming that the Yakaar-Teranga agreement was renegotiated. However, a letter from former minister Biram Souley Diop to Gueye, dated May 15, 2026, reveals that the agreement was actually a withdrawal or early termination of the contract. The letter, marked confidential, confirms that there was no renegotiation.
The role of PETROSEN, Senegal's national oil company, has also been questioned. Gueye and others have raised concerns about PETROSEN's ability to assume the role of operator on complex offshore projects. While PETROSEN has made significant progress in recent years, with a new generation of young and competent engineers, the company still faces challenges in terms of technical, financial, and human capacity.
The issue of operatorship is closely tied to the development of PETROSEN's capabilities. According to President of the Republic, PETROSEN should focus on mastering onshore operations before moving to offshore projects, which are more complex. However, Gueye has been criticized for not following the advice of engineers to prioritize the development of the Sangomar gas field, which has the potential to produce 400 MW of electricity.
The controversy surrounding Yakaar-Teranga has raised important questions about the management of Senegal's oil and gas resources. The project's development will have significant implications for the country's energy sector and economy. As the debate continues, it is essential to separate fact from fiction and focus on the technical, economic, and legal realities of the project.
Key points
- The Yakaar-Teranga project has been the subject of conflicting views from the Senegalese government and former PETROSEN director Alioune Gueye.
- The project's agreement with Eni has been questioned, with Gueye criticizing the company's involvement.
- PETROSEN's ability to assume the role of operator on complex offshore projects has been raised as a concern.
