Senegal places local content at the center of the country’s energy sector agenda (By Charné Hundermark)



Senegal places local content at the center of the country’s energy sector agenda (By Charné Hundermark)

The Senegalese government introduced a national approach to energy sector development, placing local content as a key factor in the industry’s success

DAKAR, Senegal, October 11, 2021 / APO Group / –

By Charné Hundermark, Southern and East Africa Editor

Over 450 billion cubic feet of natural gas and 1 billion barrels of oil reserves have positioned Senegal as an exceptionally attractive hydrocarbon destination. Recent significant discoveries made in 2014-2016 have only made the country more attractive, and with the introduction of international oil companies (IOCs), the sector has seen accelerated project development and industry expansion. . Led by HE President Macky Sall, the Senegalese government has introduced a national approach to energy sector development, placing local content as a key factor in the industry’s success.

Local content at the forefront of industry expansion

With an ambitious goal of ensuring that local businesses account for 50% of oil and gas activities in Senegal by 2030, the government is not only focusing on ensuring that local businesses benefit from increased participation in the sector. sector, but also to position themselves as key drivers of the country’s growth. transformation of the energy sector.

More recently, project developments that have taken off across the country have created new opportunities for local oil and gas companies and Senegalese service companies. The two largest developments in the country, the Greater Tortue Ahmeyim project and the Sangomar field development project, in particular, presented a unique opportunity for CIOs to contribute to the development of the energy and domestic sectors in Senegal. Companies like Woodside Energy, BP, Kosmos Energy and Technip have a role to play, and the government is working to ensure that role is fulfilled.

Local content-driven institutions take the lead

In pursuit of improved local content, the Senegalese government has turned to building institutions to help regulate the sector’s activities and ensure that local content requirements are met by all industry players. The most notable of these is COS-Petrogaz, an agency responsible for the supervision, evaluation and control of the implementation of state policy. In order to ensure the implementation of the country’s global energy vision, the organization emphasizes transparency, good governance and the promotion of local content.

Meanwhile, with an emphasis on building local capacity, the government established the National Petroleum Institute (INPG), aimed at developing human capital within the oil and gas industry. The main objective of the INPG is to train and develop the local workforce in order to reduce the dependence on foreign workers for the development of the industry. Through the training of petroleum engineers, geologists and technical oil and gas professionals, the INPG is committed to strengthening the national workforce, improving the lives of thousands of Senegalese by creating opportunities for participation in industry.

Goal-oriented policies shape the Senegalese sector

In line with local content ambitions, the Senegalese government has gone to great lengths to ensure industry compliance and enforcement. By inserting local content requirements and mandates into the legal framework, the policy is used as a driving force for local capacity building, skills transfer and workforce participation.

The government has set up a National Local Content Oversight Committee (CNSCL), responsible for coordinating the development of local content in the industry. What makes the committee unique is that it includes five representatives from the national private sector and oil and gas companies, one representative from civil society and two representatives from unions. As a result, the CNSCL represents the people, which leads to increased transparency and productivity regarding the implementation and regulation of local content.

In January 2019, Senegal implemented a new Petroleum Code that emphasizes the preservation of national interests and local content. The code introduces specific provisions on local content, including requirements for the participation of the national private sector; require that goods and services related to the petroleum industry be supplied by local companies; ensure that obligations are in place for the transfer of technology; prioritization of the employment of Senegalese workers; as well as renewed ownership specifications that state that hydrocarbon resources belong to the people rather than the state.

Through focused national goals, institutional oversight, and an industry-focused legislature, Senegal is quickly becoming a leader in local content. The country is working to ensure that energy sector developments do not progress without the active participation of the local workforce, and has placed capacity building, skills transfer and participation of national companies at the forefront of the sector’s growth. At the region’s premier energy event, MSGBC Oil, gas & Power 2021 (, to be held in Dakar on December 2-3, Senegal’s progress and achievements in content local will be highlighted, with stakeholders. had the opportunity to dialogue directly with regulators and authorities. Read more about the conference here: The Energy Minute: MSGBC Oil, Gas & Power 2021 (

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