Gambiaj.com – (Dakar, Senegal) – Australian energy giant Woodside is pressing ahead with preparations for the second phase of the Sangomar oil field, Senegal’s flagship offshore energy project, signaling confidence despite the new administration’s push to review and potentially renegotiate oil and mining contracts.

Senegal’s recently elected President Bassirou Diomaye Faye has made it clear that one of his administration’s key priorities is reclaiming greater control over national resources. In his April 3 Independence Day address, he announced that “the process of renegotiation of contracts takes its normal course,” framing it as part of a broader effort to “reappropriate our sovereign resources.”

But while international oil majors like BP are reportedly scaling back their presence in the country—having sold their interest in the Yakaar-Teranga gas discovery to Kosmos Energy and considering pulling out of the Grand Tortue Ahmeyim (GTA) phase 2 project—Woodside appears undeterred.

According to reporting by Jeune Afrique, the Australian company is preparing to enter talks with Senegalese authorities over the development concept for Phase 2 of the Sangomar project. These negotiations are expected to begin between 2025 and 2026, after a 12- to 24-month assessment of production data from Phase 1.

Sangomar, located about 100 kilometers south of Dakar, has become a cornerstone of Senegal’s ambitions to become a hydrocarbon producer. Phase 1 of the development required a substantial investment of $5.2 billion—21% more than the initial $4.1 billion budgeted when the project was approved in 2020 under former President Macky Sall.

The infrastructure in place for Phase 1 includes 23 wells—11 for production, 10 for water injection, and 2 for gas injection—alongside the floating production, storage, and offloading (FPSO) vessel Léopold Sédar Senghor and extensive subsea infrastructure.

Phase 2 will scale this up further. Woodside’s plans outline 33 additional subsea wells—16 for production and 17 for water injection—all to be tied into the existing FPSO. The investment required for this second phase is estimated at $2.5 billion, according to a Senegalese government source quoted by Jeune Afrique.

The talks with Woodside will be led by Talla Gueye, recently appointed head of Exploration-Production at Petrosen, Senegal’s national oil company. Gueye replaced Thierno Seydou Ly in March 2025 and is expected to play a pivotal role in shaping the next chapter of the country’s energy policy.

Despite looming negotiations and a tax dispute with Senegalese authorities, Woodside remains optimistic. The company has reaffirmed its commitment to the country, stating it is “very proud of the relationship that the company has established with Petrosen and the Government of Senegal to develop Sangomar.”

This optimism appears justified, at least from a reserves standpoint. In a recent update, Woodside reported that proven reserves at Sangomar rose by nearly 55 million barrels in 2025, bringing the total to 1.98 billion barrels of oil equivalent. With current production rates at 100,000 barrels per day and total output hitting 3.08 million barrels in March alone, Sangomar is projected to maintain operations for at least 15 years.

These figures underscore the strategic importance of Sangomar not just for Woodside but also for Senegal’s economy, especially at a time when the government seeks to maximize returns from its natural resources.

The upcoming negotiations between Woodside and the Senegalese government will thus be closely watched, not only for their economic implications but also as a litmus test for President Faye’s resource nationalism agenda. Whether this bold new approach can coexist with the interests of multinational energy firms may well determine the future shape of Senegal’s oil and gas industry.