Interest in Senegalese oil and gas projects will grow

Subject

Senegal's oil and gas prospects.

Significance

Senegal is preparing to join the ranks of Africa's oil and gas producers, as exploration led by Cairn Energy and Kosmos Energy delivers positive results. Poor supply and high energy costs have historically been a barrier to Senegal's economic development. The oil and gas finds could radically transform the economy, although Kosmos' gas discovery is a long way offshore and will require cooperation with neighbouring Mauritania. While BP's involvement is a significant boost to the project, the past participation of the president's brother has raised transparency concerns.

Impacts

• The emergence of Dakar as a regional port would prompt wider inward investment.
• The power sector will benefit from lower fuel costs, but not through an instant windfall.
• Senegal's neighbours stand to gain from increased oil and gas exploration investment and better energy supply.