image: roadlinkuae.com
A number of Senegalese articles have recently alleged that oil and gas exploration licenses have been awarded to South African-based company, Africa Oil & Power.
In the interest of the truth and to restore a trouble-free atmosphere, and in the context of untrue information circulating around our country’s oil and gas management, we feel it is important to give the correct information to the public.
The agreement in question is a Memorandum of Understanding (MoU) signed between our national oil company PETROSEN and the Strategic Orientation Committee for Oil and Gas, COS-Petrogaz, on one side and the organizer of an international oil and gas conference in South Africa, Africa Oil & Power, on the other side. The MoU is focused on creating a promotion strategy for the Senegalese offshore basin, which remains relatively underexplored, despite recent discoveries.
The agreement, therefore, does not cover any license award or contract, as the licensing round will be conducted following a standard international process, as stated in the new petroleum Bill (article 12).
PETROSEN has participated in the largest international conferences globally for more than twenty years, pertaining to its mandate to promote Senegal’s sedimentary basin. The conferences are key for communication with industry stakeholders. To maximize one’s presence, it is important to coordinate with the organizer in order to deliver one’s message in the timeliest manner.
It is in this context that PETROSEN signed an MoU with Africa Oil & Power, who will organize its annual international oil and gas conference to promote Senegal as an investment destination and to attract companies and international operators.
As stated during the National Workshop for the implementation of the local content law in Diamniadio last July, Senegal has a dozen exploration blocks open for tender. An intense promotion campaign is necessary to attract top global operators in oil and gas capitals such as Texas, Canada, the U.K., and South Africa. This MoU was signed in regard to this promotion campaign and we will have a host partner at each step of the process.
In South Africa, during the conference, the State of Senegal, through the Ministry of Petroleum and Energy, will officially launch the licensing round for open blocks and indicate to oil and gas companies the procedures for the submission of applications. This process is conducted across many markets and is well understood by all stakeholders.
Following the announcement, the operators will get in touch with the Ministry of Petroleum and Energy, who is the only authority allowed to deliver hydrocarbon exploration permits in Senegal (article 3 of the 2019 petroleum Bill).
This process is more efficient and less costly, given the high number of participants at the conference. It is less expensive than organizing a licensing round event by ourselves.
Finally, we call for a stronger sense of responsibility when reading and passing information relative to our strategic oil and gas sector.
Permanent Secretariat of the COS-Petrogaz PETROSEN
