Senegalese Prime Minister Ousmane Sonko over the weekend declared a BP (BP L) gas contract “unfair”, revoking 71 mining licences and freezing the accounts of a major Indorama subsidiary until it settles approximately 380 million euros (US$438 million).
Sonko said that more sweeping reforms lay ahead, signalling the most decisive measures yet from a government that came to power in 2024 with a pledge to audit and potentially renegotiate resource deals in the West African nation and restore its financial stability.
“The contracts that have been signed are unfair, which we intend to discuss in detail,” Sonko said in a televised statement.
The government review found that a gas contract for the Greater Tortue Ahmeyim project operated by BP was one-sided and unfair.
Sonko said he would publish a document with the details of the contracts studied, which also included fishing and infrastructure, but did not provide specific details about any discussions with BP.
Sonko said the renegotiations would rebuild Senegal’s finances and boost the economy by delivering cheaper gas to industries as well as the population.
Senegal is grappling with debt that reached 132% of gross domestic product at the end of 2024, according to the International Monetary Fund, which froze its lending program after a government audit discovered misreported debt.
Sonko has previously said the country will not need to implement a restructuring plan, despite what he referred to as a difficult and painful repayment schedule.
Senegal has announced a plan to close 19 government agencies to save money. Tensions have risen at universities over the government not paying students promised financial aid. Meanwhile, teachers’ unions have held nationwide strikes over shortages, salaries and taxes.
Reuters
