Senegal’s oil and gas dividends will not be immediate

Subject

Senegal oil, gas update.

Significance

Senegal’s oil and gas policy committee is putting the finishing touches to a revenue management law with the aim of presenting it to parliament before the 2019 budget debate in October. President Macky Sall recently held a national day of consultation to discuss the future of the nascent oil and gas industry, as civil society concerns over elite enrichment and transparency persist.

Impacts

• Oil and gas production will bring port infrastructure and service industry benefits, although probably not as much as the authorities hope.
• Eventual domestic supply of gas will help alleviate Senegal’s chronic power shortages, but the infrastructure will take time to build.
• Neighbouring The Gambia and Guinea-Bissau will see renewed offshore exploration interest, despite more challenging operating environments.