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Senegal To Receive €50M From Africa Finance Corporation To Boost Oil & Gas Industry

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The Corporation’s investment in the Sangomar oil field will be used to drive the first phase of development towards achieving first oil, a key milestone in the advancement of the country’s hydrocarbons sector

Africa Finance Corporation (AFC) (www.AfricaFC.org), the leading infrastructure solutions provider on the continent, is partnering with the Government of Senegal to fund the development of the landmark Sangomar oil field.

Through this strategic collaboration, AFC will invest €50 million in the oil field to help boost the country’s emerging oil & gas industry and improve energy access and security in Senegal. Located 100 kilometers southwest of the capital, Dakar, the Sangomar oil field spans 7,490 square kilometers and is estimated to hold around 500 million barrels of crude oil.

The Corporation’s investment in the Sangomar oil field will be used to drive the first phase of development towards achieving first oil, a key milestone in the advancement of the country’s hydrocarbons sector. The facility will provide a significant boost to Senegal’s economy, supporting the country’s ambitions to become a regional hub for the oil & gas industry. It will also generate significant revenues for the government through taxes and royalties, create employment opportunities for local workers, and contribute to energy security by reducing dependence on imported oil & gas.

“We are pleased to support the development of the Sangomar field which we expect to have a transformative impact on the Republic of Senegal and its people though the reduction of import reliance, the generation of increased government revenues, the creation of local jobs and an overall contribution to accelerated industrialisation and economic development,” said Mr. Samaila Zubairu, President & CEO of the Africa Finance Corporation.

Since the Republic of Senegal acceded to membership of the Corporation in 2019, AFC has helped to finance several critical sectors of the country’s economy. These include:  the 300MW combined-cycle gas power project in Cap des Biches, the country’s largest Independent Power Project (IPP); the construction and rehabilitation of road networks in Senegal through Fonds d’Entretien Routier Autonome (FERA); and the provision of funding to the Ministry of Economy and Finance for projects such as the 128MW Sambangalou Hydro Power Dam in the Kedougou region and the procurement of petroleum products for power generation.

AFC is a major investor in the continent’s largest renewable energy platform through its recent acquisition of Lekela Power in partnership with Infinity Power. The platform operates 1.3 GW of solar and wind power projects in South Africa, Egypt and Senegal, and has a 1.8GW project pipeline at various stages of development.

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

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