Senegal’s Prime Minister, Ousmane Sonko, has initiated one of the nation’s most assertive resource sector reforms, labeling the BP-operated Greater Tortue Ahmeyim gas contract as unfair, revoking 71 mining licences, and freezing the accounts of a major Indorama subsidiary until it settles approximately €380 million ($438 million) owed to the state.
These actions follow commitments by Sonko’s 2024 administration to audit and renegotiate resource agreements, aiming to strengthen Senegal’s fiscal position, provide lower gas prices for industries and households, and enhance economic transparency.
“The contracts that have been signed are unfair contracts, which we intend to discuss in detail,” Sonko said during a televised address.
A government review, cited by Reuters, concluded that the Greater Tortue Ahmeyim gas contract, managed by London-based BP, was heavily skewed and economically disadvantageous, prompting calls for renegotiation to better safeguard national interests.
Senegal faces debt levels reaching 132% of GDP at the close of 2024, according to the International Monetary Fund, which suspended its lending program after misreported debt emerged during a government audit.
Previously, Business Insider Africa reported that the administration plans to close 19 government agencies to cut costs, while financial strains have triggered nationwide teacher strikes and university unrest over unpaid student aid.
Africa’s resurging resource nationalism
Senegal’s assertive measures mirror a broader trend of resource nationalism across Africa, as governments increasingly scrutinize foreign contracts to maximize domestic benefits.
Earlier in the year, Niger revoked licences for three mining companies due to contract breaches, while nations such as Ghana and Zambia have tightened regulations to capture greater value from their natural resources.
Analysts attribute these shifts to growing domestic demands for fiscal stability, increased awareness of Africa’s mineral wealth, and competition among global firms for access to critical commodities.
Reuters also noted that Senegal froze the accounts of Industries Chimiques du Sénégal (ICS), owned by Singapore-based Indorama, until the €380 million debt is paid.
The government further cited infrastructure overcharges averaging 15%, underscoring the financial pressures driving these reforms.
Sonko emphasized that the review will continue throughout his tenure, promising extensive changes across energy, mining, and infrastructure sectors.
While BP has not issued a statement, the actions signal a clear message to foreign investors: Senegal is asserting authority over contracts and natural resources, reflecting a broader continental push for fairer resource agreements and greater economic sovereignty.