Senegal Offers 104 Oil and Gas Blocks as It Seeks New Investors

Senegal is offering 104 oil and gas blocks to investors as it seeks new exploration contracts and partners for major gas and refining projects, Energy and Petroleum Minister El Hadji Abdourahmane Diouf said at African Energy Week 2026 in Cape Town.

The country has reorganised its upstream acreage into 113 blocks, of which four are under contract and five have been allocated to Italy’s Eni for studies, leaving 104 available for potential investors, according to Diouf.

“We hope to sign a number of contracts,” he said, describing Senegal as open to investment and committed to respecting international procedures.

The acreage, reorganised in March 2026, comprises 65 onshore and 48 offshore blocks. The government is seeking international and regional companies to explore the available areas as it pursues further development of its petroleum resources.

Beyond exploration, Senegal is seeking partners to develop the Yakaar-Teranga gas project alongside national oil company Petrosen, which took full control of the project after Kosmos Energy withdrew in April 2026.

The project is intended to supply gas for electricity generation, industrial uses, including fertiliser production, and exports. Diouf said development would require a clear investment programme, credible buyers and an appropriate commercial structure.

“Our strategy is to build the value chain from the well to the factory, with gas at the heart of our industrial ambition,” he said.

Senegal is also pursuing a second refinery with an estimated investment of between two billion and three billion US dollars. The proposed facility, designed to process four million tonnes of crude a year, is expected to use crude from the Sangomar field.

The Société Africaine de Raffinage (SAR) and Turkey’s Yamata signed a memorandum of understanding for the refinery in New York on September 23, 2026. Diouf said the project could create opportunities in storage, logistics, distribution and petrochemicals.

The minister called on prospective investors to examine Senegal’s geological data, engage with technical teams and submit proposals backed by the capacity to finance and execute projects. He also urged companies to involve Senegalese businesses and workers from the outset, with support from the country’s local content monitoring committee.

“Capital must earn a return. Senegal must gain a stronger economy. The partnership we seek must serve both purposes,” he said.

Diouf also said Senegal wanted to expand the MSGBC regional energy alliance, which currently brings together Senegal, Mauritania, The Gambia, Guinea-Bissau and Guinea. He did not identify additional countries under consideration.

The push to attract new upstream investors comes alongside efforts to develop domestic gas use and expand refining capacity, linking exploration to electricity generation, industrial production and downstream infrastructure.

Source: FSX Business News