Senegal’s Ministry of Energy, Petroleum, and Mines has formalised a strategic partnership with the Italian energy major Eni to conduct technical evaluations of five offshore blocks. The Memorandum of Understanding (MoU), signed in Dakar, signals a renewed push by the West African nation to expand its resource base following its recent transition into the ranks of global oil producers.
The agreement allows Eni to assess the hydrocarbon potential of five specific blocks located in the deep and ultra-deep waters of Senegal’s maritime territory. While the financial specifics of the preliminary study phase have not been disclosed, the move aligns with President Bassirou Diomaye Faye’s administration’s goal of optimizing the nation’s natural resources through partnerships with experienced international operators. The Minister of Energy, Petroleum, and Mines, Birame Souleye Diop, represented the government during the signing ceremony, emphasizing the importance of high-quality technical data in attracting further investment.
This development comes at a pivotal moment for Senegal’s energy sector. In June 2024, the country achieved a historic milestone with first oil from the Sangomar field, operated by Woodside Energy. As the Sangomar project ramps up to its target production of 100,000 barrels per day, the Senegalese government is keen to ensure a continuous pipeline of exploration projects to sustain long-term economic growth and energy security.
For Eni, the entry into Senegal represents a logical expansion of its existing footprint in the MSGBC (Mauritania, Senegal, Gambia, Guinea-Bissau, and Guinea-Conakry) basin. The Italian firm has been increasingly aggressive in its African strategy, focusing on high-potential offshore plays that offer a path to low-carbon-intensity production. By securing a foothold in Senegal’s offshore acreage, Eni is positioning itself to replicate the success it has seen in other regional markets, such as Côte d’Ivoire, where it recently fast-tracked the development of the massive Baleine field.
Strategic Significance of the MSGBC Basin
The five blocks under study are situated in a region of the Atlantic margin that has become one of the most watched exploration frontiers in the world. The MSGBC basin has yielded several world-class discoveries over the past decade, including the Greater Tortue Ahmeyim (GTA) gas field. The GTA project, a collaborative liquefied natural gas (LNG) development between Senegal and Mauritania led by BP and Kosmos Energy, is expected to place Senegal among the top global exporters of LNG upon completion of its first phase.
PETROSEN, Senegal’s national oil company, will work closely with Eni during the evaluation period. This collaborative approach is designed to de-risk the blocks before formal production-sharing contracts (PSCs) are negotiated. By engaging a major player like Eni at the study stage, PETROSEN aims to leverage advanced seismic imaging and geological modelling technologies that can pinpoint viable reserves in complex ultra-deepwater structures.
The Senegalese government’s strategy also involves a heavy emphasis on local content and institutional capacity building. Under the current regulatory framework, any eventual exploration or production activity resulting from this MoU must comply with stringent laws requiring the participation of local firms and the employment of Senegalese nationals. Minister Diop has reiterated that while the country is open for business with international majors, the primary objective remains the equitable distribution of wealth and the development of a domestic industrial base.
Industry analysts suggest that Eni’s arrival could trigger further interest from other European and American energy firms that have been monitoring Senegal’s regulatory environment. The transition of power in early 2024 raised questions among investors regarding potential contract renegotiations; however, the signing of this deal with Eni suggests a level of continuity and a pragmatic approach to foreign direct investment in the extractive sector.
The next phase of the partnership will involve a comprehensive review of existing seismic data and the possible acquisition of new 3D seismic surveys. Should the results prove favourable, Eni and the Senegalese government are expected to move toward a formal licensing round or direct negotiations for exploration rights. This timeline aligns with Senegal’s broader “Emerging Senegal Plan,” which views the hydrocarbon sector as a catalyst for industrialisation and the reduction of electricity costs across the country.
As the evaluation progresses, the Ministry of Energy is expected to provide periodic updates to the National Assembly and the public, maintaining the transparency standards required by the Extractive Industries Transparency Initiative (EITI), of which Senegal is a member. The outcome of these studies will likely determine the pace of exploration activity in Senegal’s deepwater territory for the remainder of the decade.
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