By Nneka Nwogwugwu
Senegal’s new Petroleum code will show significant development of the country´s hydrocarbon resources in a manner that ensures the long-term protection of the environment.
In addition to the new Petroleum Code, on the diplomatic front Senegal has worked with neighboring countries in the region, and most notably with Mauritania since the Grande Tortue Ahmeyim (GTA) gas project is located on the border between Senegal´s offshore waters and those of Mauritania.
The two countries are now working closely together for the development of this flagship project that is set to transform the economies and energy sector of the two countries over the course of the next decade, by providing energy independence and boosting the availability of more competitively priced natural gas, which should be a boon to a wide range of energy-intensive industries from cement, the metallurgical industry, and manufacturing, among many others.
Along with the approval of an interstate cooperation agreement signed with Mauritania in 2019, the adoption of the Petroleum Code is yet another sign of Senegal´s commitment to developing its highly prospective hydrocarbons sector, which is forecast to begin large-scale oil and gas production from various projects over the course of 2023.
Senegal adopted a new Petroleum Code on January 24, 2019, which aims to reinforce the preservation of national interests and local content.
The new code goes significantly beyond the legislator’s concerns about local content included in the previous 1998 code, by devoting new provisions and making local content mandatory and subject to specific conditions.
It advocates for the participation of the national private sector in oil operations, as well as all contracts for the construction, supply and supply of services relating to petroleum operations.