Senegal has signed a memorandum of understanding with Italian energy company ENI to conduct technical studies on five offshore oil and gas blocks as the country seeks to expand its energy industry and boost revenues.
Senegal’s Energy Minister announced the agreement on Tuesday, following the government’s decision last week to put 109 oil and gas blocks on offer to local and international investors.
Under the agreement, ENI will finance technical studies on the five offshore blocks, while Senegal’s national oil company, Petrosen, will play a central role in the development of the country’s sedimentary basin.
The partnership comes as President Bassirou Diomaye Faye’s administration seeks to increase local participation in the oil and gas industry and develop domestic expertise in the sector.
Faye has said Senegal’s petroleum resources should be used to build local capacity and create national leaders in the oil and gas industry.
The government is also reviewing existing petroleum licences to determine whether companies holding the blocks are meeting their contractual and investment obligations.
The discovery of significant oil and gas resources off Senegal’s coast in 2014 raised expectations that the sector could generate billions of dollars in revenue, strengthen public finances and contribute to the transformation of the country’s economy.
