Senegal Revokes Foreign Mining Licenses to Renegotiate Energy Deals

Senegal’s government has launched one of the most sweeping reviews of resource contracts in the country’s recent history, targeting energy, mining and infrastructure agreements signed under previous administrations.

Prime Minister Ousmane Sonko announced a series of measures including the revocation of mining licenses, a freeze on corporate accounts and plans to renegotiate gas contracts, arguing that several deals disadvantage the West African nation as it seeks to stabilize public finances.

The most prominent dispute involves a natural gas agreement tied to the Greater Tortue Ahmeyim project, operated by BP, which the government review concluded was structured in a way that disproportionately favored external partners.

“The contracts that have been signed are unfair contracts, which we intend to discuss in detail,” Sonko said in a televised statement announcing the results of the review.

The government plans to publish documentation detailing the contracts examined, including agreements related to gas, fishing and infrastructure. Sonko did not provide specific details about ongoing discussions with BP regarding the Greater Tortue Ahmeyim project. The company did not respond to a Reuters request for comment.

The contract review forms part of a broader reform agenda launched after the current administration came to power in 2024, pledging to reassess natural resource agreements and restore fiscal stability. Senegal is facing mounting economic pressure after public debt reached 132% of gross domestic product at the end of 2024, according to the International Monetary Fund (IMF).

The IMF subsequently froze its lending program after a government audit revealed previously misreported debt figures. Sonko has said the country does not plan to pursue a restructuring program despite what he described as a “difficult and painful repayment schedule.”

The government has introduced additional fiscal measures including plans to close 19 government agencies to reduce spending.

Alongside the contract review, Senegal is moving toward taking control of the Yakaar-Teranga gas project, currently operated by Kosmos Energy. Sonko said negotiations to nationalize the project were nearly complete and that Senegal would retake the block at no cost in the coming weeks.

Kosmos Energy holds a 90% stake in the field and assumed operatorship in 2023 after BP withdrew from the project.

The government has also cancelled exploration licenses for several offshore blocks, including Diender Offshore, Differe, Cayar Offshore Shallow, St Louis Offshore Shallow and Rufisque Offshore. Officials said the earlier concession areas were excessively large and did not reflect international industry practices.

Senegal only recently entered the ranks of oil-producing states when the Sangomar field, operated by Woodside Energy, began production in June 2024.

In parallel with the energy sector review, the government has revoked 71 mining licenses, including 14 gold permits, after determining that companies failed to comply with contractual obligations.

The authorities also froze the accounts of Industries Chimiques du Sénégal (ICS), a phosphate and fertilizer company controlled by Singapore-based Indorama Corporation, until it settles 250 billion CFA francs, equivalent to about 380 million euros ($438 million) owed to the state.

Sonko described the company as a major offender within the mining sector and said the freeze would remain in place until the payment dispute is resolved. Indorama did not respond to a Reuters request for comment.

The prime minister said the government review had uncovered broader structural problems in public procurement. According to the findings, numerous infrastructure projects were priced roughly 15% above market value, costing the country hundreds of millions of euros.

“We are still a long way from having completed this work,” Sonko said, adding that the investigation into contracts and financial arrangements across sectors would continue throughout his term in office.

“We’re going to completely change the way of doing things.”