Senegal Considers Arbitration Against BP and Woodside Over Oil Contracts
Stories are grouped across languages, rewritten into a fixed editorial format, and linked to original sources. How we report.
TL;DR
- Senegal's government is reviewing major oil and gas contracts with BP and Woodside.
- Officials say international arbitration is a possible option if renegotiations do not progress.
- Key projects include BP's Greater Tortue Ahmeyim gas project and Woodside's Sangomar oil field.
- A related ICSID arbitration is underway, filed by Woodside over a $68 million tax dispute.
Overview
Senegal is critically reassessing its oil and gas contracts with international companies BP and Woodside. The government has publicly stated that it does not rule out international arbitration if negotiations fail to produce new terms it considers fairer. This stance coincides with an ongoing ICSID case filed by Woodside concerning a tax reassessment in Senegal.
What Happened
On May 14, 2026, Khadim Bamba Diagne, a senior official of Senegal's COS Petrogaz, asserted that the government is prepared to consider all options, including international arbitration, as it seeks to renegotiate oil and gas contracts with BP and Woodside.
The government launched an audit of mineral, oil, and gas contracts following the inauguration of President Bassirou Diomaye Faye in 2024. A special committee is assessing whether the agreements prioritize Senegal's national interest and whether adjustments are warranted.
The government has expressed concerns that current long-term agreements do not reflect recent developments in the energy sector and may disproportionately benefit foreign companies. Specific criticism centers on environmental, economic, and social impacts, particularly on local industries like fishing.
The government's harder stance follows Woodside's separate June 2025 ICSID arbitration filing against Senegal over a $68 million tax assessment linked to the Sangomar oil field.
Context
Senegal entered a new phase of oil and gas production in 2024, starting with the Sangomar oil project, operated by Woodside, and the transnational Greater Tortue Ahmeyim (GTA) gas project, led by BP.
Recent increases in oil and gas prices have reinforced Senegal's view that it should secure more economic benefits from these resources. The administration has stated its intention to realign foreign participation with national development goals.
Woodside's ongoing ICSID case underscores rising tensions between Senegal and the foreign oil sector.
Why It Matters
- The potential for arbitration signals a significant escalation in Senegal's approach to managing foreign investment in its energy sector.
- Ongoing disputes, including the ICSID case with Woodside, highlight legal and financial uncertainties in the sector.
- Any recourse to arbitration could reshape contract structures for major resource projects in Senegal, with implications for international investors.