Senegal oil deal faces scrutiny over alleged $55 million loss

The ‘Kosmos scandal’ has emerged in Senegal following revelations made during Prime Minister Alhaminou Lô’s general policy declaration. The controversy centers on an agreement signed between the Senegalese state and the foreign oil company Kosmos regarding the Yaakaar-Teranga block.

According to analyst Cheikh Yérim Seck, the original contract included a clause allowing the state to reclaim the block without financial impact for either party upon its expiration. However, Alioune Guèye, then head of the state company Petrosen, signed a new agreement with Kosmos three months before the contract was set to expire on July 31, 2026.

Critics argue this premature signing resulted in the state losing $55 million that Kosmos was scheduled to pay. While former Petroleum Minister Birame Soulèye Diop and Prime Minister Ousmane Sonko had previously framed the deal as a victory for national oil sovereignty, the new details raise questions regarding the timing of the agreement and its impact on Senegal’s financial interests.