Amanze Chinonye
Oranto Petroleum has dismissed what it described as a “false narrative” by the Government of Senegal over the St Louis and Cayar offshore oil and gas licences previously operated by the company, insisting it complied with its contractual obligations and invested heavily in the country, Prime Business Africa reports.
In a press statement signed by the management of Oranto Group, the company said it decided in 2025 to suspend further investments in the Senegalese licences after the government insisted on a US$25 million bank guarantee, contrary to an earlier agreement that allowed a corporate guarantee similar to those granted to other operators in the country.
Oranto Petroleum said it had, to date, committed more than US$45 million to exploration and related activities in Senegal.
Join our WhatsApp ChannelAccording to the company, the expenditures covered seismic acquisition and interpretation, acreage rentals, social investment projects and the training of Senegalese nationals, all in line with the terms of its contract. It added that these records were verifiable.
The company accused the Senegalese government of unfairly singling it out in what it called a targeted and unjustified campaign, noting that other foreign oil and gas companies were also facing difficulties operating in the country.
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The dispute is unfolding against a broader shift in Senegal’s petroleum policy following a change of political leadership in 2024, which ushered in a more assertive approach to existing oil and gas contracts. Since then, authorities have repeatedly pledged to review, renegotiate or challenge agreements they consider unfavourable to the state, framing the policy direction as part of a wider effort to protect national interest and maximise value from natural resources.
Senegal had emerged as a major West African hydrocarbon frontier after significant offshore discoveries between 2014 and 2017, including the Sangomar oil field operated by Woodside Energy and the Yakaar–Teranga gas fields led by Kosmos Energy in partnership with BP. These discoveries raised expectations of long-term revenue growth, energy security and industrial development.
However, the tougher regulatory posture has led to rising tensions with international operators. Woodside Energy is currently in arbitration with the Senegalese government over cost recovery issues linked to the Sangomar offshore development. Public statements by senior officials have also fuelled concerns over possible state intervention in the Kosmos-operated Yakaar–Teranga gas project, while BP has scaled back or exited parts of its Senegal operations amid disagreements over project terms.
Within this environment, Oranto Petroleum, a Nigerian-founded independent exploration company with assets across Africa, held interests in the St Louis and Cayar offshore licences.
The company maintains that it halted further investment after the government demanded a US$25 million bank guarantee, a condition it says differed from the contractual framework applied to other operators.
Oranto Petroleum described itself as a leading player in hydrocarbon exploration in Africa, saying it has invested over US$500 million across the continent in exploration and development activities. The company said its business model focuses on early-stage exploration and acreage de-risking, with later-stage development carried out in partnership with third-party operators.
The company reaffirmed its respect for the rule of law in all jurisdictions where it operates and urged the public to disregard narratives that, in its view, undermine Africa’s investment climate, warning that prolonged disputes and policy uncertainty risk damaging investor confidence and demarketing African investment opportunities.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
