Alioune Gueye: Yakaar-Teranga 55 Millions Dispute Challenges Senegal PM

• Former PETROSEN Director General Alioune Gueye is disputing Prime Minister Al Amine Lo's claim of a 55 million dollar debt related to Kosmos's withdrawal from the Yakaar-Teranga gas block.
• The dispute centers on differing interpretations of the withdrawal agreement and the legal framework, specifically Article 19 of Law n° 98-05 and the Code pétrolier Sénégal.
• Gueye argues that over 300 million dollars in completed works, including wells and seismic campaigns, fulfill contractual obligations, negating any outstanding claim for the 55 million dollars.
• Despite a joint agreement signed on April 22, 2026, and the Minister acknowledging Gueye's position as "legitimate," the crucial ministerial decree formalizing the withdrawal remains unsigned.
• Kosmos's withdrawal was driven by its permit expiring in June 2026, financial difficulties, and an inability to attract new partners after BP's departure.

Alioune Gueye is publicly challenging Prime Minister Al Amine Lo regarding a contested sum of 55 million dollars, a dispute that centers on the interpretation of the agreement governing Kosmos's withdrawal from the highly strategic Yakaar-Teranga gas block.

Former Director General of PETROSEN, Alioune Gueye, is publicly challenging Prime Minister Al Amine Lo regarding a contested sum of 55 million dollars, a dispute that centers on the interpretation of the agreement governing Kosmos's withdrawal from the highly strategic Yakaar-Teranga gas block. This asset is widely regarded as the most promising gas reserve within Senegal's sedimentary basin. The controversy gained prominence following a statement by the Prime Minister in the National Assembly on April 22, 2026, where he alluded to a potential financial shortfall linked to the withdrawal, implicitly targeting the PETROSEN official who signed the agreement.

On the same day, Senegal announced it had successfully regained control of the Yakaar-Teranga block without incurring any financial payment, a development the Prime Minister lauded as a "major victory." He further indicated that the withdrawal would be formally validated through a ministerial decree. However, the process encountered an unexpected hurdle. After Kosmos, the operator, formally requested ministerial approval for its immediate renunciation and committed to transferring contractual data on April 24, the Minister of Energy, Petroleum, and Mines did not proceed with signing the decree.

Instead, on May 15, the Minister issued a request to Kosmos for detailed expense reports and a calculation of any outstanding balance related to the 55 million dollars. A similar request was simultaneously sent to PETROSEN concerning transmitted data and the calculation of this potential balance. Alioune Gueye responded on May 19, disputing the legal foundation of this claim. He maintained that the withdrawal agreement effectively safeguarded the State's rights without creating new debt, asserting that all stipulated work had already been completed.

Despite the Minister acknowledging Gueye's position as "legitimate" on June 1, the disagreement over the 55 million dollars persists, with the Minister indicating the matter now falls under the purview of the Ministry of Finance. The crucial ministerial decree remains unsigned, and Gueye confirms that Kosmos has not received any formal notice or call for guarantee regarding this sum.

The foundational framework for the Yakaar-Teranga block's development was established with the signing of a Production Sharing Contract (CRPP) on January 17, 2012. This was subsequently reinforced by the approval of specific decrees on June 19, 2012, namely n° 2012-596 for Cayar OSP and n° 2012-597 for Saint-Louis OSP, which set the parameters for exploration and production activities in the area.

Central to Alioune Gueye's argument against the 55 million dollar claim is a precise interpretation of contractual obligations and the Code pétrolier Sénégal. He draws a clear distinction between a minimum expenditure commitment for the study and development period and an actual, enforceable debt. Gueye references Article 4 of Decree n° 2024-713 and pertinent provisions within the Petroleum Code that detail minimum work programs.

Specifically, he points to Article 19 of Law n° 98-05, which, in his view, provides for an indemnity only when work obligations are not fulfilled, rather than an automatic reimbursement of funds that were not fully expended. Gueye asserts that substantial work has indeed been completed on the block, including the drilling of Teranga-1, Yakaar-1, and Yakaar-2 wells, alongside an extensive 3D seismic campaign. These operations, he claims, represent an investment exceeding 300 million dollars, with the resulting data and assets now belonging to Senegal.

Based on this, the former PETROSEN Director General concludes that the contractual expenditure benchmark for the completed works has been met, thereby leaving no remaining amount to be claimed under the disputed 55 million dollars. He contends that the agreement signed on April 22, 2026, was primarily a formality, awaiting only the publication of a ministerial decree by the Minister of Energy, Petroleum, and Mines.

The Kosmos Yakaar-Teranga withdrawal was not an isolated decision but rather the outcome of a series of challenging circumstances for the operator. According to Mamadou Faye, another former Director General of PETROSEN, Kosmos's exit was a logical progression, particularly as its permit was scheduled to expire in June 2026. By this juncture, Kosmos no longer perceived a compelling economic interest in retaining its stake in the block.

Furthermore, Kosmos was reportedly grappling with financial difficulties and had encountered significant challenges in attracting new partners following the earlier departure of BP from the project. These factors collectively contributed to the renegotiations that commenced in August 2024, culminating in the joint agreement signed with PETROSEN on April 22, 2026, which formalized the Kosmos Yakaar-Teranga withdrawal.

Despite the signing of this agreement and the Prime Minister's initial announcement of a "major victory" for Senegal, the ongoing Sénégal oil gas contract dispute over the 55 million dollars highlights a persistent interpretative disagreement regarding the financial implications of the withdrawal. The fact that the ministerial decree remains unsigned underscores the unresolved nature of this particular aspect of the Kosmos Yakaar-Teranga withdrawal, leaving the final financial obligations in question.

Source: Original reporting via Pressafrik