Speaking to the press on Saturday, President Bassirou Diomaye Faye reiterated the government’s ambition to renegotiate gas and oil contracts, to enable Senegal to benefit more from the spin-offs of these natural resources. The Head of State also touched on other issues, including relations with the Bretton Woods institutions.

Bassirou Diomaye Diakhar Faye reaffirmed the government’s wish to renegotiate petrol and gaz contracts.

«My conviction is that we could have better negotiated these contracts. Our strategy is to see avenues to re-negotiate.  Thus, we will re-negotiate these contracts and try to see how to invest in other sectors for their development and avoid the malediction of petrol», said the President of the Republic Saturday, during his first face to face with the national media, after his first 100 days at the head of Senegal.

The production of the first barrel of petrol of the Sangomar fields, situated off he coast of Senegal   and constitutes the country’s first off shore petrol project, is effective since 11 june 2024.

In the implementation of this 1st phase of the Sangomar project, Woodside is in a joint venture with the Oil Company of Senegal  (Petrosen), with a respective participation of 82% and 18%.

Despite everything, the Head of State assures that “there will be a renegotiation and that it will be beneficial for Senegal”.

For the first phase of operation, the cost of the project is estimated between $4.9 and $5.2 billion, according to Woodside. Phase 1 of the development includes 23 wells including 11 production wells, 10 water injection wells and 2 gas injection wells.

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And for the President of the Republic of Senegal, all this deserves to be scrutinized, both the contracts and the costs of the projects (Gta and Sangomar).

Regarding gas, it was said that Senegal and Mauritania have “detected on the side of the Bp company, an additional cost which is not justified, and have requested an audit”.

Asked by our colleagues about his relationships with the Bretton Woods institutions, Bassirou Diomaye Faye indicated: “Countries like ours never have enough resources and emergencies are everywhere. The main challenge remains the mobilization of resources, which can only be done through internal taxation, import duties and recourse to debt. In terms of debt, we no longer have much margin, but we are obliged to resort to it. The main thing is that we are working to keep Senegal’s signature credible to obtain the amounts sought.” The Head of State specifies that these institutions remain partners and that he does not consider them “scapegoats”.

“For our respectability, we do not need external pressure for us to make progress in the area of ​​good governance.

When we consider that what these institutions require us to do does not go in the direction of the interests of Senegal or the Senegalese people, at that moment, we will make it clear to them, with objective arguments, that this option is not the right one. And this is the alternative that we are proposing,” said Diomaye.

Composition of the Csm, declaration of assets, re-examination of certain contracts: Diomaye takes his time

The measures taken by the government to reduce the cost of living, with the drop in prices of consumer goods, were also discussed.

In this regard, he says he inherited a difficult economic situation, with “red” indicators.

The head of state informed that he had blocked a decision to increase the price of water taken by the former regime.

“We also found things that were not clear. For example, my predecessor and his team issued an order on March 29, 2024 to increase the cost of water consumed by households. Barely installed, I risked facing discontent from the population due to high bills, which is abnormal,” explained the head of state.

By Dialigué FAYE / dialigue@lequotidien.sn

  • Translation by Ndey T. SOSSEH