As Senegal moves aggressively to terminate and renegotiate petroleum contracts it has deemed unfair to its people, the Guyanese government continues to hold firm on the sanctity of its 2016 Production Sharing Agreement with ExxonMobil, despite longstanding criticisms that the deal significantly favours the oil company over the country.
Senegalese Prime Minister Ousmane Sonko announced in March 2026 that his government has terminated concessions covering several oil blocks since taking office, including the Diender, Djiffere, Kayar Deep Offshore, Kayar Shallow Offshore, Saint-Louis Shallow, and Rufisque Offshore blocks. The Senegalese government, led by President Bassirou Diomaye Faye, has framed the decisions as part of a broader energy sovereignty strategy aimed at securing more advantageous terms for the country’s natural resources.
Sonko stated that Senegal would no longer operate under a model where contracts are signed with partners and revisited 25 years later, adding that the government intends to define a national strategy before selecting future oil and gas partners. Authorities have also announced plans to renegotiate the Greater Tortue Ahmeyim gas project contract, which is operated by BP alongside Kosmos Energy, Petrosen, and SMH, calling the existing terms “excessively favourable” to the companies involved.
In contrast, President Irfaan Ali of Guyana addressed the matter directly during a recent appearance at Rice University’s Baker Institute in Houston, Texas, reaffirming that his administration values predictability for investors and will not revisit the Exxon agreement. Ali stated that his government has instead introduced a new Production Sharing Agreement governing future offshore oil agreements with the State.
The position marks a notable departure from statements Ali made in 2020 while campaigning for the presidency, when he criticised the Coalition-era deal and spoke openly about the need to review and renegotiate contracts to prevent the country from receiving the wrong end of the stick. In a 2023 BBC interview, Ali acknowledged that Guyana did not secure the best deal but maintained that the sanctity of contract must be respected.
The Stabroek Block agreement, signed in 2016 under former Natural Resources Minister Raphael Trotman, waives all taxes on the oil companies and allows cost recovery of up to 75 percent of investments before the remaining 25 percent is divided. Of that share, Guyana receives 12.5 percent, along with a 2 percent royalty. Trotman himself has since called for the deal to be renegotiated, an offer that Vice President Bharrat Jagdeo declined.
It is worth noting that the previous APNU/AFC administration did successfully negotiate a correction to the agreement through Addendum No. 1 in April 2019, closing a loophole that had allowed the 2 percent royalty to be recovered by the oil companies.
SOURCE: Kaieteur News, “Senegal terminates concessions for several oil blocks as contract review underway,” May 12, 2026
