By Enyichukwu Enemanna
Senegalese Prime Minister Ousmane Sonko on Thursday declared that a gas contract with BP was “unfair”, revoking 71 mining licenses and freezing the accounts of a major Indorama subsidiary in the West African nation until it settles about 380 million euros ($438 million).
“The contracts that have been signed are unfair contracts, which we intend to discuss in detail,” Sonko said in a televised statement.
He said more sweeping reforms will follow, signalling the most decisive measures so far from a government that came to power in 2024 with a pledge to audit and potentially renegotiate resource deals in the country struggling to restore financial stability.
The government audit indicates that a gas contract for the Greater Tortue Ahmeyim project operated by BP was one-sided and unfair and never reflected the country’s interest.
Sonko said he would publish a document with the details of the contracts studied, which also included fishing and infrastructure. He however did not provide specific details about any discussions with BP.
Sonko said the renegotiations would rebuild Senegal’s finances and boost the economy by delivering cheaper gas to industries as well as the population.
Senegal is grappling with debt that reached 132% of gross domestic product at the end of 2024, according to the International Monetary Fund, which froze its lending programme after a government audit discovered hidden debt under previous administration.
Sonko has previously said the country will not need to implement a restructuring plan, despite what he referred to as a difficult and painful repayment plan.
Senegal had earlier announced that it was considering closing down 19 government agencies to save money despite imminent job losses.
Sonko said talks to nationalise the Yakaar-Teranga gas project, operated by Kosmos Energy were nearly concluded and Senegal would retake the block at no cost in the coming weeks.
Kosmos Energy, which has a 90% stake, became the operator of the Yakaar-Teranga gas field in 2023 after BP decided to exit.
Kosmos said in an email it was withdrawing from the block and that its license expires in July 2026. “We have not been able to attract a suitable partner and agree a commercially attractive development concept with the government of Senegal,” Kosmos spokesman Thomas Golembeski said.
