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Senegal Begins Production at First Offshore Oil Project

Senegal has commenced production at its first offshore oil project, operated by Australia’s Woodside Energy. Situated at the Sangomar oil fields, 100 kilometers offshore, the vessel will seek to extract 100,000 barrels of oil per day. Senegal discovered oil and gas for the first time in 2014, raising hopes of significant revenue and economic transformation for the West African nation. However, the new government, led by President Bassirou Diomaye Faye, believes that previous governments agreed to unfavorable terms with investors and plans to review oil and gas contracts with foreign companies. The sector is expected to generate over $1 billion annually for the next 30 years. However, Woodside Energy holds an 82% stake in this particular project, with state-owned Petrosen holding the remainder. Apart from the oil project, Senegal also has a liquified natural gas project at the border with Mauritania, which is scheduled to begin operations by year’s end.