Senegal Hydrocarbon Contract Audit: What Operator Contract Reviews Mean for Sangomar and GTA

The government of Senegal has progressed its strategic review of legacy petroleum contracts signed under prior administrations. The special audit commission has delivered preliminary evaluations regarding the mega Sangomar deepwater oilfield (Woodside) and Greater Tortue Ahmeyim - GTA cross-border LNG project (BP / Kosmos Energy).

While affirming legal stability for international capital, the administration has insisted on strict compliance with the 2019 Petroleum Code (Law No. 2019-03).

What this means for operators

1. Tightened Cost Oil audits: Tax authorities and state oil company PETROSEN are enforcing rigorous accounting audits on CAPEX and headquarter service cost allocations to protect state Profit Oil split.
2. Compulsory domestic gas quotas: Offshore gas operators must guarantee domestic allocations to national utility Senelec at regulated prices prior to receiving export authorization for spot LNG cargoes.
3. Enforcement of local content decrees: IOCs and Tier-1 contractors must submit annual local capacity transfer plans within 60 days, validating procurement priority for certified Senegalese vendors.

Key Dates

• Final audit consultative round: 45 days for contradictory operator submissions.
• Gas Allocation Committee meeting: Mandatory tripartite session with PETROSEN and the Ministry.