Senegal, Eni Sign Protocol for Offshore Block Studies

In Senegal, the Ministry of Energy and Petroleum and Italian energy group Eni signed a protocol to study five offshore oil and gas blocks, as reported by Senego, with the explicit understanding that this agreement does not yet confer exploration or exploitation rights.

This significant development, occurring on the sidelines of Gastech 2026, marks a strategic move by Senegal to revitalize its oil and gas exploration sector, following an audit of existing contracts that has opened 109 of the country's 113 blocks to potential investors. The protocol specifically targets blocks SN01M, SN02M, SN03M, SN07M, and SN40M, with Eni committing to fully finance a comprehensive program of technical analyses, including 2D and 3D seismic data examination, utilization of available well information, and evaluation of hydrocarbon potential. This initiative, as stated by Minister Dr. El Hadji Abdourahmane Diouf, places exploration back at the center of the country's oil strategy and aims to improve resource knowledge.

This agreement holds substantial legal and economic significance for Senegal's energy sector and for international energy companies operating or seeking to operate in the region. While not a definitive concession, the protocol signals a clear intent by the Senegalese government to attract foreign investment and expertise in its upstream petroleum industry, particularly after a period of contract review and restructuring. The legal framework governing such agreements in Senegal would primarily be the Petroleum Code (e.g., Law No. 98-05 of January 8, 1998, on the Petroleum Code, potentially updated or supplemented by subsequent legislation and decrees), which outlines the procedures for granting exploration and exploitation permits, as well as the terms for production sharing contracts or concession agreements. The current protocol, being an "étude" (study) agreement, likely falls under preliminary arrangements that precede formal licensing rounds or direct negotiations for exploration permits, emphasizing data acquisition and technical evaluation before any rights are formally attributed.

The key parties involved are the Senegalese Ministry of Energy and Petroleum, represented by Minister Dr. El Hadji Abdourahmane Diouf, and the Italian energy giant Eni. This initiative underscores the Senegalese government's proactive approach to leveraging its natural resources, with the Minister emphasizing the goal of enhancing knowledge of resources and attracting new investments. For legal practitioners advising energy companies, this development highlights Senegal's renewed focus on exploration and the potential for new opportunities in its sedimentary basin. Attorneys should closely monitor the subsequent phases of this protocol, particularly any announcements regarding formal bidding rounds or direct negotiations for exploration licenses for these or other blocks. Understanding the nuances of Senegal's Petroleum Code, its regulatory bodies (such as PETROSEN), and the evolving contractual frameworks for oil and gas exploration and production will be crucial for clients looking to enter or expand their presence in this increasingly attractive West African market. The emphasis on data quality and technical evaluation also suggests a rigorous approach to future licensing, requiring robust due diligence from prospective investors.