Senegal’s newly elected President Bassirou Diomaye Faye plans to review the contracts of oil and gas projects, reported Bloomberg.
The reassessment of contracts with major industry players such as BP, Kosmos Energy, and Woodside Energy Group is aimed at enhancing the state’s revenue from these ventures.
The West African nation is on the brink of becoming one of the world’s fastest-growing economies as it prepares to launch the $4.8bn Grand Tortue Ahmeyim liquefied natural gas (LNG) project and the Sangomar oil development.
Faye’s economic team has confirmed his intention to reassess the projects following his victory in the recent presidential election.
Faye’s oil adviser Ngagne Demba Toure said: “To boost the state’s revenue from oil and gas, it is necessary to renegotiate the contracts to increase the state’s shares and change the system of sharing of production.
“Renegotiating contracts does not mean that the state will impose itself on the companies without taking the law into consideration, but that the two parties agree to discuss some clauses of the contract.”
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By GlobalData
Read More: Senegal’s new President to reassess oil and gas contracts