Senegal is preparing to join the club of hydrocarbon-producing countries with the Sangomar, GTA and Yakaar-Teranga projects. But this new era raises an essential question: are we simply going to exploit or are we going to transform in a sovereign way?
In this ninth issue of the newsletter Sénégal 2050 & Souveraineté, co-written with Pape Babacar Thiam, Civil Engineering Engineer (Geotechnical speciality || Roads (dimensioning of paving stones) || Stability of residues || Certification on VAT applicable to oil and gas operations), we offer a strategic reflection on the place of energy in the construction of a sovereign, industrial and sustainable state.
This article analyses seven fundamental pillars:
- industrial sovereignty driven by energy ;
- the use of gas and oil for the local economy;
- local content as a driver of change ;
- the transition to a diversified energy mix (gas, typha, solar, etc.);
- environmental governance and transparency ;
- social inclusion and public acceptability ;
- and budgetary trade-offs around debt, subsidies and the future.
Oil can enrich a country or trap it. It all depends on strategy.
INTRODUCTION : Energy sovereignty, a multidimensional challenge
Energy independence is a crucial challenge for African countries like Senegal. It determines our ability to pursue a coherent industrial policy, to process our raw materials locally, to stabilise our public finances and to strengthen our geostrategic influence.
Senegal, in the midst of political and economic transformation, is preparing to exploit its oil and gas resources (Sangomar, GTA, Yakaar-Teranga). But without a clear strategy, transparent governance or rigorous budgetary and environmental planning, this windfall can quickly become a trap.
World history teaches us that energy (oil, gas, electricity) has always been at the heart of any economic transformation: from France during the Trente Glorieuses to contemporary China. Why shouldn't Senegal, in turn, transform this resource into an engine of sovereignty?
1. Energy at the heart of industrial sovereignty
Energy has always been the basis of any real sovereignty. In developed countries, industrial transitions have been made possible by massive access to abundant, cheap energy. Oil, in particular, played a decisive role in the Thirty Glorious Years in Europe and Japan, and more recently in the industrial expansion of countries such as China and India.
In Senegal, the story is quite different. Despite its chronic dependence on oil imports, the country has often suffered the fluctuations of the world market without being able to counter them with a structured energy strategy. Massive subsidies to SENELEC, the high cost of electricity for households and businesses alike, and the absence of a sustainable energy industrial policy have long held back development.
With the discovery of fields such as Sangomar, GTA or Yakaar-Teranga, Senegal is entering a new era. But oil and gas do not automatically guarantee energy sovereignty. Everything will depend on how these resources are exploited, developed and integrated into a long-term vision.
Three levers are essential:
1.1 Planning a national industry supported by energy
Natural gas, if used to produce electricity at low cost (via gas-to-power), could support sectors such as agro-industry, cement works, the steel industry and local chemicals. This presupposes territorial anticipation: where should the power stations be located? How can they be connected to production areas?
1.2 Developing national sovereignty infrastructures
Pipelines, LNG terminals, storage and liquefaction units, and refining infrastructure need to be thought out with a national logic. The example of the Dangote refinery in Nigeria shows that an African player can integrate the entire energy value chain and move away from an all-import approach. Senegal, on the other hand, is still dependent on a refinery that needs to be modernised (SAR), and its expansion must be a strategic objective.
1.3 Securing access to energy for territories
Energy sovereignty is not just about operating figures. It must be translated into concrete action by lowering production costs for local businesses, securing supplies for households, and reducing inequalities between Dakar and the regions.
2. Strategically developing Senegal's oil and gas resources
Senegal, with the entry into production of fields such as Sangomar, GTA (Grand Tortue Ahmeyim) and soon Yakaar-Teranga, is embarking on a new era: that of a hydrocarbon-producing country. But being a producer does not automatically mean being sovereign.
The key lies in the State's ability to develop this resource over the long term, guarantee a fair distribution of revenues, structure local industries and secure national energy independence.
2.1 Contracts to be secured and monitored
The first battle for sovereignty is being fought in the production sharing and field management contracts. The agreements signed with Woodside (Sangomar) and BP (GTA) will have to be rigorously monitored: transparency on oil costs, control over taxation, audit of sharing mechanisms.
PETROSEN, the armed wing of the State, has a crucial role to play. But it needs skills, resources and decision-making autonomy, without political pressure or red tape. Setting up an independent public reporting system (inspired by the EITI) is a basic requirement.
2.2 The strategic case of Yakaar-Teranga: priority to the national market
The Yakaar-Teranga gas field represents one of the biggest gas potentials in West Africa. Unlike GTA, which was designed for export via LNG, Yakaar-Teranga's priority is to supply the domestic market: power generation, industrialisation, supplying industrial areas and developing domestic gas.
This strategic direction is all the more essential as it will enable :
- Reduce the national energy bill;
- Reduce subsidies to SENELEC ;
- Favour a local productive fabric capable of exporting processed goods.
2.3 L’enjeu des infrastructures souveraines
Without efficient national refinery, Senegal risks continuing to export crude oil in order to import refined fuel at high cost. It is therefore strategic to:
- Modernising the SAR or setting up a new refining unit;
- Develop a national pipeline network to secure distribution ;
- Set up a modern gas terminal connected to industrial zones and regional energy hubs.
2.4 Managing flows, creating value
Adding value to oil and gas is not just about collecting royalties. It's organising intelligent local transformation, ensuring that :
- financial flows are stabilised (sovereign wealth funds, fair taxation of extractive industries),
- energy flows primarily serve the national economy (priority to local energy),
- and that skills flows are national (local training, not systematic outsourcing).
3. Local content and economic sovereignty
Energy sovereignty cannot be decreed. It is built from the ground up, with women, men, local businesses, training courses, mastered technological tools... Oil or gas can enrich a country or make it more dependent. The difference lies in what the country chooses to do with its resources.
The local content is precisely this mechanism that enables a volatile rent to be transformed into richness permanently anchored in the national fabric. It is also one of the most concrete indicators of the real level of sovereignty.
3.1 An ambitious but still fragile law
In 2019, Senegal adopted a local content law for the hydrocarbon sector. It aims to:
- Reserve a share of contracts for Senegalese companies,
- Promote local employment in oil and gas projects,
- Strengthen skills and technology transfers,
- Create specialized training centers.
But implementation remains uneven, and sometimes slow. Local SMEs’ lack of preparation, the complexity of international operators’ requirements, and the absence of clear monitoring or enforcement mechanisms weaken the law’s impact.
3.2 Train, integrate and empower
Energy sovereignty requires advanced technical skills: petroleum engineering, geophysics, regulation, offshore logistics, industrial environmental management… It is therefore necessary to:
- Strengthen university and technical education offerings (e.g., ISEP, UGB, IST);
- Finance vocational training for young people in production areas;
- Promote employment opportunities in the sector’s subsidiaries and subcontractors.
A targeted strategy to integrate young people and women, particularly in support activities, logistics chains and maintenance occupations, would enable both greater social acceptance and a fairer distribution of value.
3.3 Senegalese SMEs: active participants or extras?
Today, hydrocarbon-related contracts are largely captured by multinationals. Local SMEs often struggle to meet standards, deadlines and financial requirements.
It is therefore urgent to:
- Create an extractive-sector SME development fund,
- Establish a supplier registration, certification and support platform,
- Develop specialized incubators for petroleum services (logistics, engineering, auditing, safety…).
The objective is clear: build a Senegalese oil and gas economy that is integrated, resilient and competitive rather than dependent on foreign players.
4. Energy transition and a diversified mix: between gas and renewables
The energy transition is not a luxury for Senegal. It is a strategic necessity at the intersection of three imperatives:
- Secure supply and energy independence in the medium term;
- Reduce subsidies and costs that weigh heavily on the national budget;
- Meet climate commitments under the Paris Agreement and the JETP (Just Energy Transition Partnership).
The gas windfall offers an opportunity, but it must not delay the shift toward a cleaner, more diversified and more inclusive mix.
4.1 Natural gas as a transition solution
Developing gas through the gas-to-power model can:
- Stabilize electricity generation,
- Reduce costs for households and industry,
- Enable the gradual phaseout of heavy fuel oil.
The project Yakaar-Teranga is therefore crucial to supplying modern, low-emission thermal power plants and supporting industrial sectors. However, gas must not become a new source of dependence : its role should be a bridge between oil and renewables.
4.2 Typha: a Senegalese innovation with underestimated potential
One of the most innovative contributions in Pape Babacar Thiam’s text is to highlight typha’s energy potential, an invasive plant proliferating in wetlands. Rather than treating it as a nuisance, he proposes:
- using it to produce biofuel,
- converting it into green charcoal or industrial briquettes,
- integrating this industry into territorial development hubs.
This circular resource-use model offers a double benefit: it creates clean energy and local jobs while restoring affected ecosystems.
4.3 Renewable energy: solar, wind and green hydrogen
Senegal’s solar and wind potential is considerable. Projects such as Taïba Ndiaye (wind) and the solar plants at Kahone, Bokhol and Malicounda are already in place. But their share of the mix remains marginal (less than 20%).
It is necessary to:
- Remove regulatory and logistical barriers,
- Strengthen storage and distribution infrastructure,
- Integrate solar projects into local development strategies,
- Explore prospects for green hydrogen production from renewable resources.
4.4 A coherent, connected strategy
The transition can succeed only if:
- projects are designed around an energy mix rather than substitution ;
- institutions are coordinated around a clear transition plan ;
- natural resources (gas, sunlight, biomass, wind) are integrated into territorial planning.
Senegal’s energy mix must not be imposed by donors or markets, but built around resilience, spatial justice and sovereignty.
5. Governance, environment and transparency: a pillar of sustainability
Energy sovereignty cannot be separated from a robust, responsible governance framework. Oil and gas are more than resources: they are tests of democracy, environmental justice and institutions’ ability to regulate power.
‘Without governance, there is no sovereignty. And without sovereignty, resource rents become a curse.’
That is what the history of Nigeria, Angola and Venezuela teaches us.
5.1 Flaring, methane and pollution: the hidden side of resource rents
Hydrocarbon extraction carries substantial environmental externalities:
- methane emissions, a greenhouse gas 80 times more potent than CO₂;
- offshore natural gas flaring, a major source of waste and pollution;
- risks of oil spills and contamination of groundwater and fisheries resources.
Senegal must acquire emissions-reduction technologies and impose strict standards on operators: capture, reinjection and local utilization.
5.2 A renewed legal framework: the 2023 Environmental Code
The new Environmental Code, adopted in 2023, offers an opportunity:
- to regulate environmental impact assessments (EIAs),
- to establish an environmental atlas of production areas,
- to strengthen citizen oversight of energy projects.
But the law alone is not enough. We need capable, independent institutions with real resources.
5.3 Transparency and citizen oversight: toward a strategic state
Senegal’s participation in the Extractive Industries Transparency Initiative (EITI) is an achievement that must be strengthened. It must be extended through:
- a public mining and energy cadastre,
- a regular, accessible and intelligible reporting system,
- alert, oversight and monitoring platforms open to civil society.
The COS-PETROGAZ coordination body would benefit from becoming an independent authority with investigative, evaluation and enforcement powers, free from partisan pressure.
5.4 Governing energy as a common good
Beyond contracts and figures, the challenge is simple:
govern oil and gas as we govern water, health and education: as public goods.
This requires an ethical, intergenerational and territorially grounded approach placing transparency, accountability and planning at the heart of the energy pact.
6. Social inclusion and acceptance: toward shared sovereignty
Energy sovereignty is measured not only through geopolitical autonomy or reduced imports. It is judged at citizens’ level : what they perceive, experience and receive.
There lies a dangerous paradox: a country can produce oil… while its citizens distrust or even reject it because they lack information, fairness or tangible benefits.
6.1 Avoiding the pre-resource curse through social transparency
Even before Senegal’s first drop of oil is extracted, signs of impatience, distrust or resignation are appearing.
Why?
- Because people are not sufficiently informed about projects, contracts and expected benefits.
- Because production areas have not yet received the benefits promised.
- Because expectations are high, but promises remain vague.
A national effort in public education and transparency is essential to maintain social cohesion and public support.
6.2 Integrating communities into extraction projects
The regions of Saint-Louis, Cayar and Bargny, and tomorrow Rufisque or Joal, are on the front line.
But what do fishers, artisans, traders and young people in these areas know about ongoing projects?
Senegal must:
- Systematically include participatory local development plans around deposits,
- Establish community development funds financed by extractive revenues,
- Create territorial monitoring and evaluation committees including elected officials, local leaders, women, young people and civil society.
6.3 Local employment: from hope to reality
Employment is central to acceptance.
But headline announcements must be avoided and the foundations of a genuine strategy established:
- Identify occupations accessible in the short term : security, maintenance, logistics, cleaning, catering…
- Provide targeted, certified training suited to upcoming projects,
- Guarantee a minimum local recruitment quota in contracts,
- Encourage local entrepreneurship in related services.
Without jobs, there will be no support. Without support, there will be no stability.
6.4 Sovereignty as a social contract
Sovereignty cannot be technocratic. It must be experienced as a pact between the state and its people.
This requires:
- regular forums for dialogue,
- mediation tools in times of tension,
- and an inclusive vision of energy development that goes beyond figures to embrace people.
7. Budgetary challenges, debt and strategic trade-offs
Oil and gas are often seen as a magic solution to budgetary problems. In practice, however, they can also worsen imbalances unless governed by rigorous oversight and transparent decisions.
The real challenge is not receiving money, but managing it wisely with future generations in mind.
7.1 The trap of borrowing against anticipated revenues
Since the discoveries were announced, Senegal has taken out numerous loans on international markets, sometimes at high rates, anticipating future revenues that are not yet guaranteed.
This gamble presents two risks:
- If revenues fall below forecasts, debt becomes unsustainable.
- If budget priorities are not clearly established, resources can be squandered without structural transformation.
7.2 Subsidies, privatization and difficult trade-offs
The energy sector is among the most heavily subsidized. Billions are spent every year to cushion electricity costs. In this context:
- Should SENELEC continue to receive support without deep reform?
- Should certain strategic segments be privatized?
- Should oil revenues go toward debt or productive investment?
These choices must be made collectively and with full transparency.
7.3 A sovereign and intergenerational fund: a condition for stability
Following Norway, Botswana or Ghana, Senegal should create a sovereign wealth fund with two purposes :
- Stabilize public finances in the short term (budget support),
- Invest in the future: education, health, research and infrastructure.
An intergenerational fund backed by strict rules and independent governance would offer a guarantee of confidence, transparency and justice between generations.
CONCLUSION: Genuine, fair and sustainable energy sovereignty
Oil and gas are neither an end nor a miracle. They are means.
Their management will be the ultimate test of our ability to plan, include, govern and innovate. Exploiting a resource is not enough to benefit from it: its economic, social, environmental and political effects must also be controlled.
This text, co-written by a practitioner and a strategic planner, calls for a transition toward energy intelligence :
- energy designed to support an industrial vision,
- planned, equitable and transparent revenue management,
- an ecological transition suited to local realities,
- territorially grounded, shared and inclusive sovereignty.
Senegal has a historic window of opportunity it must not miss. It can become an African model of sovereign and sustainable energy resource management. But it will do so only by placing ethics, strategy and justice at the heart of public action.
| @Thierno DIALLO
Géographe, Expert en Planification – Aménagement – Réinstallation
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@ Pape Babacar Thiam
Ingénieur en Génie civil (Spécialité géotechnique || Routes (dimensionnement des pavés) || Stabilité des résidus || Certification sur la TVA applicable aux opérations pétrolières et gazières) |