Senegal considers arbitration against BP and Woodside over oil contracts

Energy strategy chief signals readiness to renegotiate deals amid rising hydrocarbon prices

Dakar is prepared to take bold steps to revise its oil and gas agreements with international energy giants BP and Woodside. Khadim Bamba Diagne, Permanent Secretary of Senegal’s Strategic Orientation Committee for Oil and Gas, made the announcement during the Africa CEO Forum, emphasizing that no option is off the table—including international arbitration—to ensure fairer terms for the country’s resources.

Why arbitration? clarifying long-term oil and gas contracts

With contracts spanning 30 to 50 years, Diagne stressed the urgency of addressing inequities now rather than perpetuating them. “It’s better to correct mistakes early than let them take root,” he stated. The offshore nature of Senegal’s oil and gas fields directly impacts the fishing industry, which employs between 600,000 and 700,000 people. Diagne argued that a responsible state cannot allow foreign companies to extract wealth while local communities bear the environmental and economic costs without adequate compensation.

Balancing profits and sustainability in hydrocarbon exploitation

Senegal’s position is reinforced by the current global energy crisis, which has driven hydrocarbon prices to historic highs. Diagne highlighted that while oil majors profit from the surge, Senegal must also benefit proportionally. “All partners in the joint ventures must gain from this price environment,” he insisted. The push for arbitration aims not only to secure immediate financial gains but also to establish clear legal precedents for future decades of resource extraction.

The country has only recently begun exploiting its oil and gas reserves, and the timeline for these activities remains uncertain. Diagne underscored the need to set robust, equitable foundations now to prevent long-term disputes and ensure sustainable development for Senegal’s economy and workforce.