Senegalese authorities have cancelled offshore exploration rights previously held by Atlas Oranto Petroleum, a privately owned oil and gas company founded by Nigerian billionaire Arthur Eze, in a move that underscores the government’s tougher stance on inactive petroleum licenses.
According to Business Insider, the decision reflects
Senegal’s drive to strengthen regulation of its energy sector and accelerate
the commercial development of its hydrocarbon resources.
The license was withdrawn after the company failed to meet
key operational and financial obligations attached to the asset.
The government revoked the Cayar Offshore Shallow
exploration license after determining that Atlas Oranto had not provided the
required bank guarantees and had carried out only limited exploration work
since the block was awarded in 2008, despite several deadline extensions.
The offshore block, which spans about 3,600 square
kilometers north of the Dakar peninsula, is regarded as oil-prospective but
remains largely underexplored. While seismic surveys identified several
potential leads, no exploratory wells were drilled throughout the license
period.
Under the oversight of Energy and Petroleum Minister Birame
Souleye Diop, the ministry formally terminated the license in September 2025,
citing repeated failures by the company to fulfill contractual and financial
requirements. Industry sources referenced in early 2026 also confirmed that
there was little meaningful seismic or drilling activity on the block.
Senegal has since taken back control of the acreage,
describing the move as part of a broader effort by President Bassirou Diomaye
Faye’s administration to enforce compliance and apply stricter screening
standards to petroleum license holders.
The decision places Senegal among a growing number of
African oil-producing countries reassessing legacy exploration contracts signed
during earlier licensing rounds. Across the continent, governments are facing
increasing pressure to ensure that oil and gas rights result in tangible
investment, drilling, and production, rather than being held for speculative
purposes.
The revocation has also renewed scrutiny of Atlas Oranto’s
wider regional operations. In Liberia, the company secured four offshore
production-sharing contracts in September 2025, covering Blocks LB-15, LB-16,
LB-22, and LB-24 in the Liberian Basin. Those agreements reportedly included a
signature bonus of between $12 million and $15 million, with proposed
investments exceeding $200 million per block.
Liberian authorities described the deals as an attempt to
revitalize a petroleum sector that has seen minimal activity for more than a
decade. However, Atlas Oranto has yet to issue an official response to
Senegal’s decision at the time of filing this report.
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