Ogona Anita
Senegal has revoked offshore exploration rights previously held by Atlas Oranto Petroleum, the Nigerian-owned oil and gas company founded by energy entrepreneur, Arthur Eze, signaling a stricter regulatory approach toward underperforming petroleum licences.
The government withdrew the Cayar Offshore Shallow licence after discovering that Atlas Oranto had failed to provide the required bank guarantees and carried out minimal exploration since the block was awarded in 2008, despite multiple extensions.
Covering roughly 3,600 square kilometres north of the Dakar peninsula, the licence is considered oil-prone but remains largely unexplored.
Under Energy and Petroleum Minister, Birame Souleye Diop, the ministry formally revoked the licence in September 2025, citing repeated failures to meet financial and contractual obligations. Industry sources confirmed that the acreage saw little meaningful seismic work or drilling during the licence period, with no wells drilled despite promising leads from earlier surveys.
Senegal’s action reinforces its commitment to ensuring that oil and gas licences translate into tangible investment, exploration, and production rather than being held for speculative purposes under President Bassirou Diomaye Faye’s administration. Officials framed the revocation as part of a broader policy shift to enforce compliance and tighten oversight of petroleum rights holders.
The decision also highlights a wider trend among African producers to reassess legacy oil and gas contracts from previous exploration cycles, demanding stricter performance and financial accountability from licence holders.
The revocation has renewed scrutiny of Atlas Oranto’s regional operations. In contrast, in 2025, the Liberia Petroleum Regulatory Authority signed four production-sharing contracts with Atlas Oranto Petroleum International Ltd for offshore blocks LB-15, LB-16, LB-22, and LB-24 in the Liberian Basin. Those agreements included signature bonuses of $12–15 million per block and proposed investments exceeding $200 million each, aimed at revitalising Liberia’s largely dormant petroleum sector.
However, the Liberian contracts faced criticism from lawmakers and civil society groups over transparency, Atlas Oranto’s financial capacity, and potential environmental risks. Critics also raised concerns about structuring signature bonuses in instalments, which they argued could reduce incentives for early-stage exploration, especially in high-risk offshore areas.
Senegalese authorities maintained that Atlas Oranto’s nearly two-decade failure to provide bank guarantees or advance exploration work justified the revocation, underscoring a governance approach focused on accountability and performance in managing petroleum assets.
