Senegal is considering raising royalties and taking a bigger stake in oil and natural gas projects as part of the West African nation’s overhaul of its oil code, according to a document obtained by Bloomberg.
Senegal is revising its code as a string of major discoveries off its coast is expected to make the country an oil exporter in coming years, with explorers including BP Plc and FAR Ltd. due to make investment decisions on projects within the next 12 months. Existing regulations are two decades old and were adopted when the nation wanted to attract investment for largely untested resources.
A draft of the new code is proposing that state-owned oil producer Societe Des Petroles Du Senegal, also known as Petrosen, take a stake of between 10 percent and 30 percent in operational fields and a carried interest of the same size when projects are being developed, according to the document. Existing regulation limits Petrosen’s holding to 20 percent for these stages.