Since the first discoveries of oil and gas in its sedimentary basins, Senegal has established itself as a strategic player in West Africa. In 2024, the country is now recognised as a hydrocarbon producer, with a notable rise in power thanks to flagship projects such as Sangomar and Grand Tortue/Ahmeyin (GTA).

The Sangomar oil field, located around 100 km off the coast of Senegal, represents a major turning point for the country’s economy. In production since June 2024, this project is based on an FPSO (floating production, storage and offloading unit) capable of producing up to 100,000 barrels a day. With estimated reserves of 630 million barrels of oil and 113 billion Nm³ of natural gas, Sangomar offers Senegal a new source of revenue and export opportunities.

The Grand Tortue/Ahmeyin (GTA) project, located on the maritime border between Senegal and Mauritania, has brought the country into the circle of major producers of liquefied natural gas (LNG). The field, with estimated reserves of 20 TCF (530 billion Nm³), began production on 31 December 2024, with an initial capacity of 2.5 million tonnes of LNG per year. GTA will supply both the domestic market and exports, offering an unprecedented opportunity for regional cooperation in the energy field. As well as diversifying Senegal’s revenues, the project will help reduce energy dependency and open up opportunities for local industrial development.

In the event of the discovery of a commercially exploitable hydrocarbon deposit, it may be applied for by an oil or gas company. Petroleum resources may be explored and exploited by any legal entity under Senegalese law that can demonstrate the technical and financial capacity to carry out these activities, under the following authorizations:

• A prospecting permit for a maximum period of two (2) years, granted by order of the Minister in charge of Energy, Oil and Mines in areas not covered by a hydrocarbon mining title;
• The hydrocarbon exploration authorization granted to the holder by decree for an initial period not exceeding four years;
• The provisional exploitation authorization which is granted, by order of the Ministry in charge of Energy, Oil and Mines , to a legal entity that already holds an exploration permit for a period that cannot exceed the maximum period of 06 (months);
• The exclusive exploitation authorization which is granted to the holder following a presidential decree, for a period not exceeding 20 years in accordance with the provisions of Article 30 of the Petroleum Code of 2019.

Regarding the gas industry, the license and/or the concession are granted to any legal entity under Senegalese law that can prove the technical and financial capacities necessary to conduct gas activities, by means of a call for tenders or by direct consultation, by order of the Minister in charge of Energy, Oil and Mines .

Is the regime the same for both onshore and offshore?

Yes, the oil and gas codes do not differentiate between onshore and offshore activities.

• Oil Sector 

The 2019 petroleum code has reconsidered all the positive aspects of the previous code of 1998 and made other improvements including the abolition of the petroleum concession contract; it is now referred to as a production contract.

The production sharing contract is an agreement concluded in accordance with the terms of the legislation in force in the field of hydrocarbons covering a given perimeter which, in the long term, allows the distribution of the hydrocarbons produced between the State and the State’s co-contractor under a pre-established distribution mechanism.

The provisions of the contract are determined following negotiations between the applicant and the representatives of the State on the basis of a standard contract previously approved by the Government.

Furthermore, you will note that the production sharing contract consists in two parts:

• the provisions relating to hydrocarbon exploration/research
• provisions relating to the exploitation/production of hydrocarbons

As regards the exploration/research part, it is covered by the exclusive exploration authorization which is granted as a result of the signature of the production sharing contract and confers on its holder an exclusive right at his own risk and expense to carry out the research work defined in the production sharing contract.

The exclusive exploration authorization comprises three distinct periods, the duration of which is established by negotiation on the basis of the minimum work commitments but within the maximum period provided for by the laws and regulations in force.

• The first period of exploration generally consists of studies to confirm the oil operator and enable him to decide whether to continue oil activities. If the commitments made have been respected, the transition to the next period is authorized by the authorities in accordance with the terms of the contract.
• The second exploration period generally consists of the drilling of oil wells in order to certify the studies carried out during the first exploration period. If the commitments made have been respected, the transition to the next period is authorized by the competent authorities (Direction des hydrocarbures/ MPE) subject to the contract notice.
• The third exploration period consists of the drilling of oil wells in order to confirm all the hydrocarbon potential in the assigned perimeter.

In case of discovery of a new deposit, the holder will have to submit within 6 months of the notification of the discovery an application for an evaluation authorization.

Also, partial or total relinquishment is authorized provided that a notification period provided for in the contract is respected. The work commitments and financial commitments provided for remain in effect upon relinquishment.

The exclusive operating license can only be interrupted for reasons of force majeure or by renunciation. If interruption occurs during a given period (six months) without the agreement of the government, the latter may withdraw the authorization and oblige the holder to carry out the abandonment work; but this does not necessarily entail the termination of the contract in the case of multiple operating areas.

Such termination does not terminate the obligations arising before or on the occasion of the termination or expiration.

If exploitation is possible at the expiry of the authorization, the government may have it exploited by another operator without any consideration for the contract holder.

The granting of the exclusive exploitation authorization obliges its holder to carry out, at his own expense and financial risk, all useful and necessary petroleum operations for the exploitation of the deposit.

Also, upon relinquishment of all or part of the perimeter subject to the contract, all movable or immovable property used by the perimeter holder is transferred free of charge to the State unless it is used by the contract holder for the needs of its petroleum operations. If the government decides not to accept the transfer it must notify the contract holder within the contractual period following the

• Gas sector:

The Gas Code provides for a license or concession regime, depending on the gas operations envisaged. These licenses or concessions are granted by order of the Minister in charge of Energy, Oil and Mines .

The license:

The Minister in charge of Energy, Oil and Mines implements the policy defined by the Head of State for the activities of the intermediate and downstream segments of the gas sector (Article 4 of the Gas Code).

The exploration and/or exploitation of gas resources are subject to the prior obtaining of a license by a legal person under Senegalese law issued by the Minister in charge of Energy, Oil and Mines. In addition, a prior environmental assessment must be carried out and an operating permit obtained in accordance with the regulations on classified installations for environmental protection.

In addition, the construction and operation of gas infrastructures are subject to the approval of the Minister in charge of Energy, Oil and Mines .

This license is required for the import, export, re-export, aggregation, processing, storage or supply of natural gas, as well as for the transportation and distribution of liquefied and compressed natural gas (Article 7 of the Gas Code).

In addition, this license is granted only to any Senegalese legal entity and this, by way of a call for tenders or direct consultation by order of the Minister in charge of Energy, Oil and Mines according to rules to be set by decree.

In accordance with the provisions of Article 8 of Decree no. 2023-849 setting the conditions and procedures for carrying out activities in the intermediate and downstream segments of the gas sector, licences and concessions are awarded by invitation to tender, in accordance with the conditions defined by this decree and the tender documents. These invitations to tender may be open or restricted, in accordance with the provisions of Article 11. An invitation to tender is restricted when only candidates selected for their competence and experience may submit a bid. It is used in cases of urgency justified by the general interest or where a previous invitation to tender has failed. The minimum number of candidates consulted is three, and the deadline for submitting bids is at least 25 days. The Minister in charge of Energy, Oil and Mines is responsible for drafting the tender documents, including the terms of reference and the organisation of the procedures.

The tender documents set out the specific conditions and competitive criteria, such as the specifications of the licence or concession, the areas concerned, the procedures to be followed, the model specifications, the application fees, and the list of required documents. Competitive criteria may include the technical quality of the project, investment amounts, discounts on prices or remuneration, gas volumes, integration of local companies, skills transfer, societal commitments, and the use of sustainable technologies. The participation of groups of tenderers is authorised, with evaluation criteria specified in the tender documents.

The open invitation to tender is published in a legal gazette and, if necessary, in other national or international publications, at least three months before the deadline for submission. (Article 10)

Applicants for a licence or concession must comply with the specific criteria defined for each activity, in addition to the general conditions applicable to the intermediate and downstream segments of the gas sector. They must pay the appraisal fees set by the CRSE and take out the required insurance with a Senegalese company. (Article 19)

The concession:

In accordance with the provisions of Article 10 of the Gas Code, the concession must be granted for the transport or distribution of natural gas by pipeline is also granted only to any legal entity under Senegalese law that can justify the necessary technical and financial capacities.

The granting of a license or concession for downstream gas activities, including the construction of gas infrastructure, is subject to the completion of a prior environmental assessment and the obtaining of an operating permit under the regulations on facilities classified for environmental protection.

The downstream distribution activity is subject to obtaining a license if it concerns liquefied and compressed natural gas (Article 7, Gas Code), or to obtaining a concession if it concerns the distribution of natural gas by pipeline (Article 10, Gas Code).

In accordance with the provisions of article 30 of Decree no. 2023-849 setting out the terms and conditions for carrying out activities in the intermediate and downstream segments of the gas sector, the pipeline transport concession allows natural gas to be transported via a dedicated network. The applicant must :

• Have a network of gas pipelines and related facilities in accordance with the specifications of the call for tenders.
• Provide an irrevocable bank guarantee or credit statement covering the requirements set by the regulatory authority.
• Comply with international safety and security standards.
• Operate the network economically, safely and efficiently.
• Guarantee the rehabilitation of sites in the event of abandonment.
• Provide an environmental certificate, a validated safety notice and a location visa.
• The natural gas distribution concession authorises the transmission of gas via networks to supply customers. Applicants must :
• Provide proof of a purchase or commitment contract with an aggregator, as well as a sales contract with customers.
• Provide a bank guarantee or credit certificate in accordance with the requirements defined by the regulatory authority.
• Have a contract with the gas transmission operator or demonstrate the feasibility of a secondary network.
• Undertake to ensure continuity of supply for its customers. (Article 31)

The concession contract must then be approved by presidential decree. Before signing, the successful candidate must pay a bonus to the Treasury: FCFA 5 million for a concession, FCFA 2 million for a licence. The award is published in the Official Gazette, together with specifications signed by the Minister and the licensee (article 34).

The holder of a licence or concession may obtain its renewal provided that he has fulfilled all his obligations, in particular those relating to the work and financial commitments entered into. The request for renewal must be sent to the Minister for Energy, Petroleum and Mines at least six months before the expiry of the licence or concession. The duration and terms of renewal are set by an order or decree and specified in the specifications that accompany the contract. (Article 35)

In the event of renunciation, the holder of the concession or licence must submit his request to the Minister for Energy, Petroleum and Mines at least six months before the envisaged date (Article 48). Renunciation entails the withdrawal of the concession or licence. This renunciation is recorded by the Minister in charge of Energy, Petroleum and Mines. (Article 51)

Unless mistaken, we are not aware of any unconventional hydrocarbon resources being discovered..

and is there a separate regulatory regime for those unconventional resources?

To date, there is no legislation on the regulation of unconventional hydrocarbon resources.

The main regulatory bodies in the oil and gas sector are :

– The Ministry in charge of Energy, Oil and Mines;

– The Directorate of Hydrocarbons;

– The National Hydrocarbons Committee (CNH);

– The Unité́ d’Exécution et de Gestion du Comité d’Orientation Stratégique du Pétrole et du Gaz known as GES PETROGAZ ;

– The National Committee for Local Content Monitoring (CNSCL)

The government is directly involved in the oil industry through the SOCIETE PETROLIERE DU SENEGAL, known as PETROSEN, which acts in its name and on its behalf.

Following the recent discoveries in the hydrocarbon sector in Senegal, former President Macky SALL has initiated a reform of texts related to the hydrocarbon sector.

Among these texts adopted, the law n°2019-04 on local content in the hydrocarbon sector and its numerous application decrees formalized the Government’s will to set up an ambitious local content system with the objective of reaching 50% local content by 2030.

Among the guiding principles of the local content law is the obligation for any investor wishing to act as a subcontractor, service provider or supplier to create a company under Senegalese law registered with the Senegalese Trade and Personal Property Credit Register (Article 8.3). This law also establishes a classification of oil and gas activities into three regimes: exclusive, mixed and non-exclusive. The classification of an activity in each of these regimes will have consequences on the percentage of national staff and on the ownership of capital by nationals. This law requires, among other things, that each company operating in the hydrocarbon sector promote local labor and the acquisition of local goods and services, and undertake training and knowledge and technology transfer programs.

Decree No. 2020-2065 establishing the terms and conditions for the participation of Senegalese investors in companies involved in oil and gas activities defines the following concepts:

• Activity under the exclusive regime: activity of supply of goods and services that the national private sector is able to perform immediately in compliance with the norms and standards of the oil industry;
• Activity under the mixed regime: activity directly or indirectly related to oil and gas operations, which the national private sector is not able to carry out immediately in compliance with the norms and standards of the oil industry;
• Activity under the non-exclusive regime: activity directly or indirectly related to oil and gas operations that the national private sector is not able to carry out immediately in compliance with the norms and standards of the oil industry.

The characteristics of the exclusive regime are specified in article 4 of the decree and are as follows:

• The share capital of the companies whose activities are classified in the exclusive regime is held up to 51% at least by natural persons of Senegalese nationality or by legal entities controlled by natural persons of Senegalese nationality;
• More than 80% of the management of these companies is ensured by natural persons of Senegalese nationality;
• At least 51% of the staff working in these companies are Senegalese nationals.

Please note that these are minimum thresholds that the classification table provided for by Decree No. 2021-249 of February 22, 2021 may increase. Indeed, the classification table provided for by decree n°2021-249 classifies the activities according to the mixed or exclusive regime and provides for minimum thresholds of ownership of share capital by nationals and percentage of national staff for each type of activity according to its regime.

With respect to the mixed regime, Article 5 of the decree provides that a foreign company carrying out an activity subject to the mixed regime must form an association in the form of a company under Senegalese law with a local company (meeting the criteria mentioned above) which would hold at least 5% of the capital. The form of association will be defined by the guidelines of the National Committee for Monitoring Local Content (CNSCL). This is a minimum that will be subject to change depending on the study of the socio-economic fabric of the hydrocarbon sector in Senegal.

Finally, activities under the non-exclusive regime are open to free competition between foreign and local companies.

The general framework of environmental law in Senegal is composed of

• the law n°2023-15 of August 02, 2023 on the environment code

and as the new decree implementing the Environmental Code decree has not yet been published, Decree n°2001-282 of April 12, 2001 remains applicable. From a general point of view, the environmental regulation is based on a system of classes according to the danger or the seriousness of the inconveniences that the operation of the installations can present, they are subjected either to authorization, or to declaration (article 45  of the environmental code).

(A) The first class concerns installations presenting serious dangers or inconveniences and whose construction and operation are therefore subject to prior authorization by the Ministry of the Environment and to compliance with a set of measures to be undertaken (i.e., in particular, a prior investigation) (these measures are provided for by specific ministerial decrees) (articles 47  and 48  of the Environmental Code).

(B) The second class concerns installations that do not present serious inconveniences but which must respect general prescriptions provided by the Ministry in charge of the environment. In addition, before their construction and operation, a declaration must be made to the Ministry in charge of the environment and a receipt must be issued to acknowledge receipt of this declaration (article 46  of the environmental code).

There is also a prescribed environmental assessment (article 33 to 38  and following of the environment code). The objective is to analyze the possibilities and capacities of resources, natural systems and human systems in order to facilitate the planning of sustainable development, to manage the negative impacts and consequences of these projects.

Environmental Impact Assessment (EIA) is the process of examining the consequences, both beneficial and adverse, that a proposed development project or program will have on the environment and ensuring that these consequences are adequately addressed in the design of the project or program.

It should be noted that the impact assessment is part of an existing authorization, approval or concession procedure; the main actors involved in the environmental impact assessment procedure are the developer and the competent authorities. The impact study is prepared at the developer’s expense and submitted to the Ministry of the Environment, which issues a certificate of authorization after receiving a technical opinion from the Directorate of the Environment and Classified Establishments (Article 35  of the Environmental Code).

Sworn officials from the Ministry in charge of the Environment and the Ministry in charge of Energy, Oil & Mines, as well as any other committee set up for this purpose, are responsible for ensuring the environmental control and monitoring of petroleum operations (Article 130). The conditions for the management of effluents, produced water, drilling waste or any other hazardous substance resulting from hydrocarbon exploration, production or exploitation activities are determined by a joint order of the Ministers respectively in charge of the Environment and Energy, Oil & Mines (Article 132).

It is forbidden to flare gas or oil or to release gas into the atmosphere, except in the following cases:a) as part of exploration, well testing or maintenance operations;b) in the event of the need to remedy an emergency situation (Article 133). In the event of oil pollution from the cargo of an oil tanker, the owner and the operator of the tanker are liable to pay compensation for the damage caused. This liability applies in accordance with the rules and within the limits of the international conventions to which Senegal is a party (Article 160).

Depending on the potential impact, nature, scale and location of the project, the types of projects are classified in one of two categories determining the type of environmental assessment that the project owner must undertake (Article R40 implementing decree of the Environmental Code): (a) An in-depth environmental assessment when projects are likely to have significant impacts on the environment or; (b) when projects have limited impacts on the environment or the impacts can be mitigated by the application of measures or design modifications; this category is subject to an initial environmental analysis.

More specifically from a petroleum sector regulatory perspective, Article 20 of the Petroleum Code provides that the Production Sharing Contract (PSC) includes among its provisions the obligation to conduct an environmental and social impact assessment. Article 53 of the Petroleum Code provides that oil operations are conducted in accordance with the Environmental Code and other national and international laws relating to the hygiene, health and safety of workers and the public, as well as environmental protection.

Thus, the companies carry out their work using proven techniques of the oil industry and take the necessary measures :

prevention and control of environmental pollution

• to treat waste;
• to preserve the flora and fauna heritage;
• the preservation of water in the soil and subsoil; and
• the respect of the applicable regulations in the field of hygiene and health. It is also provided that the costs of the work required to protect the environment are to be borne by the oil contract holder.

(i) The State of Senegal benefits from the resources of the oil and gas industry through various means:

• The participation of the national oil company in petroleum operations by associating itself with the holders of an oil contract or a prospecting authorization. The shares of the national oil company are fixed as follows in the case of an oil contract (article 9 of the oil code):
  • A minimum of 10%, carried by the other co-holders of the hydrocarbon mining title, in the exploration and development phases, including redevelopment;
  • An option to increase this interest up to an additional 20% in the development and exploitation phases not carried by the other co-owners of the hydrocarbon title.
• Under a production sharing contract (Article 34 of the Petroleum Code), the hydrocarbon production is shared between the State and the contractor, in accordance with the stipulations of the said contract. The balance of the total hydrocarbon production, after deduction of the ad valorem royalty and the share of the oil costs, called “oil profit”, is shared between the State and the contractor, according to the terms and conditions fixed in the production sharing contract. The State’s share of this “oil profit” cannot be less than 40% and varies according to a factor known as the “R factor”, the calculation of which is provided for in the code.
• A royalty on the value of the hydrocarbons produced is provided for in the Petroleum Code (Article 42). The holder of a provisional or exclusive hydrocarbon exploitation authorization is subject to the payment of a royalty on the value of hydrocarbons produced. The royalty is calculated on the basis of the total quantities of hydrocarbons produced in the exploitation area and not used in petroleum operations. The royalty is payable, in whole or in part, either in kind or in cash, at the option of the State upon each payment. The royalty rates applicable to the production of crude oil or natural gas are fixed as follows :
  • Liquid hydrocarbons exploited onshore: 10%;
  • Liquid hydrocarbons exploited in shallow offshore: 9%;
  • Deep offshore liquids: 8%;
  • Ultra-deep offshore liquid hydrocarbons: 7%;
  • Gaseous hydrocarbons exploited onshore, shallow offshore, deep offshore and ultra-deep offshore: 6%.

The terms of recovery are specified in the production sharing contract.

• The Petroleum Code also provides for an application fee of USD 50,000 for the granting, renewal or extension of a hydrocarbon mining title. These fees are non-refundable and non-recoverable as part of the oil costs and are paid in a single instalment (Article 46 of the Petroleum Code).
• As regards surface rent (Article 47 of the Petroleum Code), provision is made for full payment of surface rent for each period due from the signing of the petroleum contract, the renewal of the hydrocarbon mining title or the extension of its period of validity. The amounts applied are as follows:
  • Initial exploration period: 30 USD / km2 / year
  • First exploration period: 50 USD/km2/year
  • Second exploration period: US$75/km2/year

(ii) However, the Petroleum Code also provides for a tax exemption and suspension regime:

• Customs exemptions (Article 49 of the Petroleum Code): With the exception of the statistical royalty (RS) and community levies, the holder of an oil contract is exempt during the exploration, appraisal and development periods from all customs duties and taxes, including the Senegalese Shippers’ Council levy (COSEC) for:
  • Materials, supplies, machines and equipment, as well as spare parts and consumables neither produced nor manufactured in Senegal, specifically and definitively intended for oil exploration operations and whose importation is essential to the realization of the exploration program;
  • Fuels and lubricants for fixed installations, drilling equipment, machines, utility vehicles, machinery and other equipment intended for oil operations.

The subcontracting companies of the oil operations benefit from the exemption of the customs duties and taxes for the realization of their services during the same periods. In order to benefit from the exemption from duties and taxes referred to above, the beneficiary companies shall submit an exemption certificate issued by the Minister in charge of Finance, on the basis of an administrative certificate approved by the Minister in charge of Energy, Oil and Mines . The exemption is granted only when the said capital and consumer goods are not available in Senegal under equivalent conditions of quality, quantity, price, delivery time and payment.

• Suspension of import duties and taxes (Article 50 of the Petroleum Code): Equipment, materials, supplies, machines, utility vehicles, machinery and equipment, as well as spare parts, products and consumables, intended directly for petroleum operations, imported into Senegal by the holder(s) of the petroleum contract or by companies subcontracting petroleum operations, and which may be re-exported or transferred after use, are declared in total suspension of import duties and taxes. In the event of release for consumption, the duties and taxes payable are those in force on the date of filing of the retail declaration of release for consumption, applicable to the real market value of the products on that same date.

Regarding local content obligations, see question 7. However, we can add that any contractor, subcontractor, service provider and supplier involved in oil and gas activities is required to submit a local content plan and a procurement plan to the CNSCL (Decree No. 2020-2047 of October 21, 2020 on the organization and operation of the CNSCL in the hydrocarbons sector).

The products resulting from the exploitation of hydrocarbon deposits are intended either for local consumption or for export.

On export restrictions: It is provided that the share of production accruing to holders of exclusive exploitation authorizations, after satisfaction of the country’s domestic needs, may be exported freely after payment of an exit customs duty set at 1% of the value of the said share of production, deductible for the determination of the profit subject to corporate income tax (Article 59 of the Petroleum Code).

On the obligations of national supply: Under the conditions fixed by the oil contract, the holders of exclusive exploitation authorizations must allocate, in priority, the products of their exploitation to cover the needs of the domestic consumption of the country. In this case, the transfer price reflects the international market price. The unit selling price of crude oil and natural gas, taken into consideration for the calculation of the ad valorem royalty, direct profit tax, oil cost and oil tax, is the market price at the point of delivery of the hydrocarbons. This price, which is in line with the current international market price, is calculated in accordance with the terms and conditions specified in the oil contract (Article 59 of the Petroleum Code)

The dismantling of facilities appears in the definitions of “abandonment” and “site restoration” in the Petroleum Code.

Abandonment is defined as all activities of plugging and sealing wells, dismantling facilities, cleaning up hazardous substances, as well as rehabilitation and decontamination of sites, in accordance with national legislation and international oil industry standards and practices.

Site rehabilitation includes all operations of any kind necessary to ensure the reclamation of sites, in particular the securing and permanent abandonment of wells, the complete or partial dismantling of installations and the dumping or disposal of materials or waste resulting from dismantling, as well as all work related to the abandonment of deposits that have not been exploited. The said operations are carried out according to the highest standards in force in the hydrocarbon industry at the time of their realization in order to ensure optimal protection of the environment.

In the event of renunciation of the exploration authorization or the exclusive exploitation authorization, the holder must carry out the abandonment work necessary to protect the environment (Articles 25 and 33 of the Petroleum Code). Similarly, in the event of expiration or termination of an oil contract or in the event of total or partial renunciation thereof, if the State does not take back the installations and equipment, the holder must carry out, at its own expense, their dismantling and removal as well as all other abandonment and site rehabilitation work. In the event of failure to do so, the Minister in charge of Energy, Oil and Mines shall order the necessary steps to be taken at the expense of the holder out of the consigned funds (Article 64 of the Petroleum Code).

In accordance with the provisions of article 50 of Decree no. 2023-849 setting the terms and conditions for carrying out activities in the intermediate and downstream segments of the gas sector, the holder of a licence or concession is required to ensure the continuity of activities until an authorisation is obtained. It must also dismantle installations and take all necessary measures to protect the environment and rehabilitate sites, in accordance with the environmental and social impact study.

In the Environmental Code 2023, prospecting, exploration and exploitation of hydrocarbons, as well as the dismantling of installations, must be subject to a prior environmental assessment. These activities may only be carried out once an environmental compliance certificate has been obtained, which specifies how the environmental and social management plan is to be implemented (Article 129). Holders of operating permits must set aside a guarantee for the rehabilitation or restoration of the affected sites. This guarantee is deposited in an account opened with a financial institution designated by the State. The procedures for calculating, funding and operating this guarantee are set by decree (Article 141).

Article 37 of the Petroleum Code provides that any pipeline construction project for the transport of hydrocarbons is subject to prior approval by the Minister in charge of Energy, Oil and Mines. The route and characteristics of the pipelines include the collection, transportation and evacuation of the production of hydrocarbon deposits. In addition, Article 57 of the implementing decree of the Petroleum Code specifies that the construction of any infrastructure for the transportation and/or storage of hydrocarbons and/or, where applicable, the liquefaction of natural gas, produced from an exclusive exploitation permit or an exploitation area is subject to prior approval by the Ministry in charge in charge of Energy, Oil and Mines . The holder of an exclusive hydrocarbon exploitation authorization shall address his request to the Minister in charge  of Energy, Oil and Mines .

Finally, it is important to specify that the construction of onshore and offshore rigid pipelines and risers is subject to the mixed regime defined above (see q. 7) in accordance with the classification table of decree n°2021-249. Consequently, an association with a local company holding at least 5% of the share capital is mandatory to carry out these activities in Senegal.

With respect to the liquefaction of natural gas, Article 39 of the Petroleum Code provides that the provisions of this law concerning the transportation of hydrocarbons apply mutatis mutandis to the liquefaction of natural gas.

Thus, as far as the transport of hydrocarbons is concerned, an authorization system is provided for, issued by order of the Ministry in charge in charge of Energy, Oil and Mines . However, for transport facilities in the maritime zone, the authorization to transport hydrocarbons is issued by a joint order of the Minister in charge of Energy, Oil and Mines and the Minister in charge of Maritime Affairs (Article 35 of the Petroleum Code). Article 57 of the implementing decree of the Petroleum Code referred to above (q. 12) is also applicable to the liquefaction of natural gas.

One LNG terminal construction projects is  currently underway:

• construction of the gas terminal at the Port Autonome de Dakar, which will receive, store, regasify and deliver LNG.

Law 2020-06 of February 7, 2020 on the Gas Code in Senegal establishes the regulations for the development of gas resources, in compliance with the standards of quality of natural gas, safety, preservation and protection of the environment. However, there are still no decrees of application to this Code but we consider it necessary to use it.

Article 43 of the Gas Code provides that any legal entity planning to carry out storage activities must first obtain a license from the Minister responsible for hydrocarbons.

This storage license is granted for a maximum period of fifteen years and may be renewed in the same manner for a period not exceeding five years provided that the holder has fulfilled its obligations.

Pursuant to Article 44 of the Gas Code, any company planning to carry out a gas storage activity must undertake to build minimum storage capacities defined by order of the Minister in charge of Energy, Oil and Mines .

In addition, the holder of a storage license is required to make available to the network operators, for the balancing of the networks and the continuity of routing on these networks, the storage capacities not used and technically available in the storage infrastructures. The terms and conditions for making this storage capacity available are set by decree.

In case of failure to comply with this obligation, the Minister in charge of Energy, Oil and Mines may impose the necessary sanctions on the advice of the Regulatory Body.

In accordance with the provisions of article 26 of Decree no. 2023-849 setting out the terms and conditions for carrying out activities in the intermediate and downstream segments of the gas sector, the storage licence authorises the holder to store natural gas in gaseous or liquid form, above or below ground, to supply the national market or for export or re-export.

In order to obtain the licence, applicants must meet the following conditions :

• submit a detailed preliminary design study for the storage facility, drawn up in accordance with the storage facility planning rules in force, and covering in particular :
  • the proposed storage capacity
  • safety distances
  • technical specifications for materials and equipment
  • fire and explosion protection measures;
  • environmental protection measures;
  • the infrastructure required for receiving and delivering tanker trucks;
  • the strategy for implementing the works, including in particular the project execution schedule, the contracting strategy, the development of local content and the operating procedure;
  • detailed cost estimates and a commercial study of the project;
    • have a suitably sized plot of land and ensure that the maximum depth of the
    • the maximum depth of the installations set out in the tender documents;
    • undertake to build the repository in accordance with the detailed preliminary design and to
    • carry out regular extensions to its facilities, at a rate at least equivalent to the average
    • at a rate at least equivalent to the average growth rate of the market in the area in question, established
    • over the last five (05) years;
    • provide a business plan including, in particular, a financing plan and
    • financing agreements covering the entire project;
    • have human resources with experience in the storage segment, or undertake to recruit them
    • have human resources with experience in the storage segment, or undertake to recruit them;
    • provide proof of authorisation from the Minister for the Environment
    • in accordance with the French Environment Code and the nomenclature for classified
    • installations classées ;
    • provide proof of environmental compliance;
    • provide a detailed plan of the location of the storage site;
    • have the required loading and unloading facilities;
    • undertake to comply with environmental standards, particularly in terms of
    • site preservation and rehabilitation, as required by current regulations
    • regulations;
    • obtain a location certificate;
    • provide a safety notice validated by the Civil Protection authority.

Articles 7 et seq. of the Gas Code establish the provisions relating to licenses and concessions issued by the government for the transportation and distribution of gas in the country.

Thus, in accordance with Articles 7 and 8 of the Gas Code, a license is granted to any legal entity under Senegalese law that can demonstrate the technical and financial capacity necessary to carry out the activities of importing, exporting, re-exporting, aggregating, processing, storing, supplying natural gas, and transporting and distributing liquefied and compressed natural gas.

The license is awarded to legal entities under Senegalese law through a call for tenders or direct consultation, by order of the Minister in charge of Energy, Oil and Mines. The modalities of implementation of the call for tenders and direct consultation as well as the conditions of admissibility of the request are fixed by decree. The license is accompanied by specifications defining the operator’s obligations.

Similarly, a concession may be granted to any legal entity under Senegalese law that can demonstrate the technical and financial capacity to carry out natural gas transportation or distribution activities through pipelines, by means of a call for tenders or direct consultation. The terms and conditions for the implementation of the call for tenders and direct consultation as well as the conditions for the admissibility of the application are set by decree.

The concession contract is signed by the Minister in charge of Energy, Oil and Mines and the applicant(s) for the concession and is approved by decree and published in the Official Gazette. The Minister in charge of Energy, Oil and Mines grants or rejects the concession applications provided for by this Code, after receiving the opinion of the Regulatory Body (Articles 10 to 13, Gas Code).

In addition, Article 27 of the Senegalese Gas Code now provides that operators of gas transmission and distribution networks and storage facilities must guarantee freedom of access for third parties.

Decree no. 2023-849 setting out the terms and conditions for carrying out activities in the intermediate and downstream segments of the gas sector stipulates that a licence to transport liquefied natural gas (LNG) or compressed natural gas authorises its holder to transport and transfer LNG and/or compressed gas, in accordance with regulatory standards, between different points on national territory by road, rail, river or sea.

To obtain this licence, the applicant must :

• have suitable means of transport (road, rail, river or sea) that comply with international standards, with a minimum capacity specified in the tender documents and a list attached to the application;
• have infrastructure such as garages and river-sea and rail terminals that meet current standards;
• have qualified staff trained in the transport of dangerous goods, first aid, defensive driving and handling fire extinguishers. (Article 28 )

The licence to distribute liquefied or compressed natural gas allows the holder to transport the gas by various means (road, rail, river or sea) to supply it to customers.

To obtain a licence, applicants must :

• hold transport contracts with a carrier or be the holder of a transport licence ;
• provide proof of a gas purchase contract or a promise of contract with an aggregator;
• have a gas sales contract with customers;
• have the logistical resources to respond in the event of a disaster;
• undertake to guarantee continuity of supply for all its customers. (Article 29)

Réseau Gazier du Sénégal (RGS SA), created in 2019, is a company dedicated to transporting hydrocarbons through pipelines, with a shareholding split between PETROSEN HOLDING SA (51%), FONSIS (39%) and SENELEC (10%). It plays a central role in the national ‘Gas to Power’ and ‘Gas to Industries’ strategy adopted in 2018, aimed at producing electricity from natural gas to supply power plants and industries. Its main mission is to build, develop, maintain and service a network of gas pipelines, while ensuring the transport of hydrocarbons from production fields to points of consumption. Through its activities, RGS SA is helping to improve people’s living conditions and transform Senegal into an industrial hub, in line with the objectives of the Emerging Senegal Plan.

Law 98-31 of 14 April 1998 on the import, refining, storage, transport and distribution of hydrocarbons abolished the monopoly of the Société Africaine de Raffinage (SAR). This reform has allowed the Senegalese market to register the entry of several players (mostly nationals) in the segments of distribution, import and transport of gas. Today, the midstream and downstream market of the gas sub-sector is competitive and liberalized among several private players for the storage, transport and distribution of gas on the territory thanks to the Gas Code.   In accordance with Decree no. 2023-849 setting out the terms and conditions for carrying out activities in the intermediate and downstream segments of the gas sector, article 66 stipulates that the storage operator must make storage capacity available to the aggregator and suppliers in a transparent and non-discriminatory manner.

Articles 7 et seq. of the first chapter of the Gas Code establish the provisions relating to licenses and concessions issued by the government for the transportation and distribution of gas in the midstream and downstream sectors in Senegal (see answers 14 and 15 above).

At the beginning of 2020, the Senegalese Parliament adopted a new Gas Code following the discovery of significant natural gas resources in the country, which were scheduled to be exploited in 2022, but which began to be exploited at the end of 2024.. With this text, the country integrates a new device by opening the way to a valorization of gas for the benefit of the national economy, to the reinforcement of the energy mix, to the energy independence.

More recently, the Senegalese legislator has by Law No. 2021-32 of July 09, 2021 on the creation, organization and powers of the Commission of the Regulator of the Energy Sector (CRSE) (Commission de Regulation du Secteur de l’Electricité) reformed the regulatory authority of the sector so that the Commission of Regulation of the Electricity Sector (CRSE) is for this purpose modified in its composition and its operation, in order to act as a regulatory body in the sector of hydrocarbons and the sub-sector intermediate and downstream gas. To our knowledge, this CRSE is not yet operational.

The oil and gas industry in West Africa, and Senegal in particular, faces major challenges in a changing global context. These challenges include the need for a stable legal framework to attract investors, as evidenced by Senegal’s 2019 local content law, the implementation of which requires rigorous monitoring. Environmental concerns also make it necessary to reconcile the exploitation of hydrocarbons with climate commitments, through strict environmental clauses and increased supervision. In addition, the lack of suitable infrastructure is holding back the development of the sector, requiring substantial investment, often carried out through public-private partnerships.

The war in Ukraine has intensified these challenges while opening up new opportunities. Soaring energy prices have highlighted the potential of African resources, such as the Grande Tortue Ahmeyim (GTA) project in Senegal, but this requires transparent management of revenues.

In response, Senegal has adapted its legislation, stepped up the promotion of local content and forged international partnerships. These initiatives aim to stabilise the sector and ensure the sustainability of energy projects, while protecting national interests and meeting investor expectations. Legal reforms, a focus on sustainability and strategic alliances are key levers for meeting these challenges and maximising opportunities in the sector.

In the regulations, and more specifically in the Gas Code, carbon neutrality is not mentioned in relation to oil and gas. However, Article 14 of this text provides that the applicant for a license or concession must provide information on the company’s beneficial owners. The granting of a license or concession for intermediate and downstream gas activities, involving the construction of gas infrastructures, is subject to the completion of a prior environmental assessment and the obtaining of an operating permit under the regulations on classified installations for environmental protection.

In addition, Article 22 of the Gas Code provides that any licensee or concession holder shall conduct its activities in accordance with the laws in force and in compliance with international standards, in particular those relating to environmental protection, hygiene, health, social aspects and safety. The licensee or concession holder takes all necessary measures to prevent and fight against environmental pollution by avoiding the discharge or leakage of any polluting product into the environment; but also to ensure, in the event of pollution, the management, decontamination, treatment of waste and rehabilitation in accordance with the provisions of the environmental and social management plan. However, there are still no implementing decrees.

With the boom in natural gas production in Senegal, the country’s regulatory and policy framework is gradually incorporating measures to reduce the environmental impact of oil and gas activities. Although texts such as the 2020 Gas Code and the 2023 Environment Code already require prior environmental assessments (Article 129 of the Environment Code), as well as financial guarantees for site rehabilitation (Article 141 of the Environment Code), specific requirements to reduce carbon emissions remain embryonic. However, general provisions prohibit the excessive flaring of gas (Article 133 of the Environmental Code), which demonstrates a desire to limit greenhouse gas emissions. In practice, players must comply with environmental and social management plans, which may include voluntary commitments or incentives to adopt less polluting technologies.

With regard to strategies linked to hydrogen production or carbon capture and storage (CCS), initiatives are beginning to emerge, albeit at a preliminary stage. Senegal is exploring the possibility of using its natural gas as a lever for energy transition, in particular through ‘Gas to Power’ projects that could encourage cleaner electricity production. Hydrogen could be part of this vision. At the same time, discussions around carbon capture and storage reflect a growing interest in technologies capable of limiting industrial emissions, even if their effective implementation will require a more elaborate legal framework and robust technological and financial partnerships. Senegal therefore seems to be gradually aligning its energy strategy with global climate concerns, but the realisation of these ambitions will depend on international cooperation and investment.