An economic opportunity for Senegal
The Sangomar project, led by Australian company Woodside Energy, Senegal is at the center of this first oil production. Located off the coast of the country, the Sangomar oil field began operations in 2024, thus beginning the exploitation of this new natural resource, First barrel Medium-sour crude oils, prized for their quality, are currently going to European refineries, particularly the Netherlands and Germany.
Thierno Ly, director of the national oil company Petrosen, said: “This first oil from Sangomar marks the beginning of a new era for our economy and social development.” His words reflect the strategic importance of this project for Senegal, both economically and socially.
The first barrels of oil left Senegal in early July aboard the Greek tanker Maran Poseidon. Shell International Trading, which charters the Maran Poseidon, is the first buyer of this Senegalese oil.The cargo will be refined at Shell’s Pernis refinery in Rotterdam, one of the largest facilities of its kind in Europe, with a capacity of 404,000 barrels per day.
Global oil market in trouble
The arrival of Senegalese oil in Europe comes at a critical time for the global oil market. The OPEC+ producer alliance is currently trying to stabilize prices through production cuts. Oil extracted from the Sangomar field, with an initial production capacity of 100,000 barrels per day, represents a new non-OPEC+ supply source for Europe, diversifying crude oil supply sources. This new production could have a significant impact on Senegal’s economy. The government hopes that the development of the oil industry will help retain young talent by providing local economic opportunities.
Expanding the sector could transform Senegal’s economy by stimulating growth and innovation. However, the management of these resources must be prudent to avoid the pitfalls of the “resource curse,” where an abundance of natural resources can slow economic and social development.. With the support of its international partners, Senegal appears well-prepared to move into this new energy era. In addition to the Sangomar project, Senegal is also preparing for the launch of the Greater Tortue Ahmeim project, a gas initiative developed by BP and Kosmos Energy.
The project, located on the border with Mauritania, could further strengthen Senegal’s position in the global energy market. Increasing oil and gas production could transform Senegal’s economy by opening up new avenues for growth and innovation. According to an analysis by S&P Global Commodities et seq, these developments reflect A historic breakthrough for the Senegalese economy,