Senegal sets up commission to review oil and gas contracts

Senegalese Prime Minister Ousmane Sonko officially set up Monday (Aug. 19) a commission tasked with reviewing the oil and gas contracts the country signed with multinational corporations.

The PM made the announcement on national TV insisting that the team of legal, tax, and energy sector experts will work meticulously to make sure all legal aspects are carefully examined.

Sonko brushed off rumours of nationalization reiterating his government's ambition to rebalance the energy contracts in the national interest.

READ MORE: Will Senegal leverage oil to transform its economy? [Business Africa]

The move comes after Senegal became an oil producer. Australia’s Woodside Energy announced in June that its Sangomar oil and gas field had produced its first oil.

Gas production from the GTA project should also kick off this year.

It remains to be seen what the commission's recommendations will be and in the event of negotiations if the expected changes can be implemented.

The move was a campaign promise of the Faye administration.