PAGE informs Senegal in developing legislation for the management of revenues expected from oil and gas

Senegal has made important commercial discoveries of natural gas and oil, which based on 2015 estimates, would make the country be the world’s 40th largest oil producer and the 20th largest gas producer. Since 2015, even larger reserves have been discovered off-shore, making oil and gas play a highly significant role in the national economy, putting the country at crossroads in its trajectory towards sustainable development. Production of oil and gas is expected to start in 2022.

This is a critical moment when Senegal is in the process of issuing legislation on the management of funds expected from oil and gas. Responding to the request of the Government of Senegal to inform the legislation, PAGE has developed the report on "Funds and mechanisms for the management of oil and gas revenues to support sustainable development”. It will serve as a milestone reference for Senegal’s mitigation of hydrocarbon-related risks and to assist the country in achieving its ambitions for an environmentally resilient and prosperous future. 

On 30 July 2019, the report was presented to the High Council on Social Dialogue of Senegal. The High Council on Social Dialogue brings together senior-level representatives from all professional sectors and is mandated by the President of Senegal to play a central role in the national dialogue around oil and gas.  The PAGE report was much welcomed and stimulated important discussions. The High Council devoted a full session from 30 July to 1 August to discuss the conclusions of the report as an input for the deliberations at its 15th plenary session. 

Among others, the report discusses principles and international standards for natural resource revenue management and distribution, covering macroeconomic challenges and the good governance of extra-budgetary funds, which are commonly found in natural resource-rich countries— In addition, it examines measures to address environmental and social impacts of extractive activities and offers several policy options for consideration.

The opening of the session took place in the presence of High-Level local authorities including Ms Awa Marie Coll Seck, Senior Minister and President of Senegal National Committee of the Initiative on Transparency in Extractive Industries; Ms Innocence Ntap Ndiaye, President of the High Council on Social Dialogue; Ms Priya Gaijraj, United Nations Resident Coordinator in Senegal; and Mr Charles Faye the Vice-president for Employers’ and Mr Lamine Fall Vice-president for workers’ organizations in the High Council on Social Dialogue.