Africa’s oil man honoured

2019-07-29T10:48:18+00:00 July 29th, 2019|African Energy Journal|

The president of the Republic of Senegal, Macky Sall, will be bestowed with the prestigious ‘Africa Oil Man of the Year’ award during the Africa Oil & Power conference, to be hosted October 9 to 11, 2019 in Cape Town.

Senegal is a global hotspot for oil and gas discoveries — well-known as the place in Africa to make major oil and gas finds, due in large to a decade-long campaign by Sall to improve transparency, create an attractive investment environment and spark new growth.

“As African countries across the continent aim to spur growth and diversify economically, Senegal is a prime example of a country making energy work — creating an enabling environment for business to succeed, attracting huge international investments, while providing for a strong local capacity and downstream investment options,” said Guillaume Doane, CEO of Africa Oil & Power. “President Sall is one of Africa’s top leaders, not just in oil and gas, but as an advocate for overall economic success. We are honoured to present him this award.”

Sall first worked as the CEO of Petrosen from 2000 – 2001, before becoming the country’s Minister of Mines Energy and Hydraulics in 2001. After a long political career in Senegal, Sall was elected president of Senegal in 2012, and pushed through a series of reforms to revive Senegal’s economy and attract international investors.

“In a continent where border disputes have held back the development of offshore resources, President Sall insists on a more productive outcome. He worked with his counterpart of Mauritania, Mohamed Ould Abdel Aziz, to secure an agreement to jointly develop offshore resources for the mutual benefit of both countries,” says Jude Kearney, former deputy assistant secretary for service industries and finance at the U.S. Department of Commerce during the Clinton Administration and currently President of Kearney Africa Advisors.

This form of agreement represents the best practice for the development of cross-border resources, and in this particular case is based on the landmark Frigg Agreement of 1976 between the UK and Norway. That case showed that when leaders work together, resources can be developed peacefully to benefit the people of both nations.

“The agreement between Mauritania and Senegal paved the way for the development of the Tortue field through cross-border unitisation, with a 50%-50% initial split of costs, production, and revenue, as well as a mechanism for future equity redeterminations based on field performance. It takes leadership, vision and foresight to get this done,” says Kearney.

Today, Senegal has one of the fastest growing economies in the world and is the fastest growing economy in West Africa. Sall has closely guided the development of two multi-billion-dollar oil projects off the coast of Senegal — the world-class SNE oilfield and the Greater Tortue/Ahmeyim gas project. The Greater Tortue project reached FID in December of 2018, and has already awarded several initial contracts, including the EPCIC contract for the development of the needed FPSO to Technip for an estimated USD500-million to USD1-billion. The SNE oilfield is expected to reach FID this year. Both projects are scheduled to start producing export revenues in the early 2020s.

To ensure the country’s new oil revenue will directly benefit the country, Sall advocated for a new hydrocarbons code, which was approved by the national assembly this year, and he also created the agency Cos-Petrogaz to oversee the oil and gas sector and issue licenses. Other reforms aimed at promoting transparency included limiting the presidential terms from seven years to five years, to be renewed once, and launching the Emerging Senegal Plan in 2014, which provides detailed planning for Senegal’s continued social and economic development.

The fourth annual Africa Oil & Power, to be held from October 9 to 11 in Cape Town, has a theme of ‘Make Energy Work’ that will focus on how oil, gas and power can generate greater opportunities for the people of African nations and stimulate sustainable economic growth.