- Senegal and Eni have signed a memorandum of understanding covering the assessment of five offshore oil blocks as Dakar seeks to revive exploration and attract new energy investment.
- Eni will finance technical studies on blocks SN01M, SN02M, SN03M, SN07M and SN40M, but the preliminary agreement does not include drilling at this stage.
- Senegal plans to offer 109 of its 113 oil and gas blocks to investors as the government seeks to expand exploration and increase the role of Senegalese operators in the hydrocarbons industry.
Senegal and Italian energy group Eni have signed a memorandum of understanding to assess the oil potential of five offshore blocks. Energy and Petroleum Minister El Hadji Abdourahmane Diouf announced the agreement on Tuesday, Sept. 15, Reuters reported.
Under the agreement, Eni will finance a technical study program covering blocks SN01M, SN02M, SN03M, SN07M and SN40M. The studies will deepen geological and geophysical knowledge of the areas, according to a ministry statement. However, the agreement covers only preliminary studies and does not include drilling at this stage.
The deal also gives Eni an initial foothold in Senegal’s upstream sector. The Italian company has not previously conducted exploration or production activities in Senegal, despite maintaining a significant presence in 14 other African countries, in some cases for several decades. Eni produces more than half of its hydrocarbons in Africa.
Moreover, Eni has expanded its exploration activity across West Africa in recent months. In June, the company secured an exploration license for an offshore block in Gambia. During the same week, Guinea awarded Eni reconnaissance permits covering 15 offshore blocks.
More recently, Eni and its partner Vitol signed two preliminary agreements in early September covering two blocks in Ghana’s Tano Basin.
Dakar Plans to Open 109 Blocks to Investors
The Eni agreement comes less than a week after Diouf announced plans to offer investors 109 of Senegal’s 113 oil and gas blocks. At the time of the announcement, contracts covered only four blocks, according to information reported by Reuters.
The government plans to market the blocks through a roadshow aimed at attracting local and international investors. President Bassirou Diomaye Faye also wants the strategy to support the emergence of Senegalese operators in the hydrocarbons sector, Diouf said.
The Eni memorandum forms part of Senegal’s broader strategy to revive exploration and promote its sedimentary basin. Senegal already produces oil from the Sangomar field, which delivered 36.2 million barrels in 2025, according to official data.
The government also plans to give Société des Pétroles du Sénégal (Petrosen) a central role in this strategy, Diouf said.
Senegal’s 2019 Petroleum Code guarantees Petrosen a stake of at least 10% in every project during the exploration phase. The framework allows Petrosen to increase its participation to as much as 30% during the development and production phases.
In parallel, Senegal’s local-content law regulates the participation of Senegalese companies and investors in the hydrocarbons industry. The government has adopted several implementing decrees since the law took effect, including measures covering local-content monitoring, the participation of Senegalese investors and the Local Content Development Support Fund.
Source: ecofinagency.com