Reported By Mary Udezue | Edited by: Gabriel Osa
The Government of Senegal has formally withdrawn the Cayar Offshore Shallow exploration licence previously held by Atlas Oranto Petroleum, the oil and gas company founded by Nigerian billionaire Arthur Eze, marking a decisive regulatory shift in the country’s energy sector. The licence, which covered roughly 3,600 square kilometres north of the Dakar peninsula, has been rescinded after more than a decade of limited activity and unmet contractual obligations dating back to its award in 2008.
Senegal’s Ministry of Energy and Petroleum, under the supervision of Minister Birame Souleye Diop, formally withdrew the licence in September 2025 after concluding that Atlas Oranto Petroleum had repeatedly failed to fulfil key financial and operational commitments attached to the exploration acreage. Authorities cited the company’s failure to provide required bank guarantees and the absence of significant exploration work — including exploratory drilling — despite the block’s oil-prone geological prospects and multiple deadline extensions granted over the years.
The decision reflects a broader strategy by President Bassirou Diomaye Faye’s administration to enforce stricter compliance in Senegal’s petroleum industry and ensure that exploration rights translate into tangible investment, development and monetisation of hydrocarbon resources. The government has emphasised that long-dormant licences — held without meaningful seismic acquisition or well drilling — will no longer be tolerated.
Throughout the licence period, industry sources noted that while seismic surveys identified several geological leads within the Cayar block, no exploratory wells were drilled, and the acreage remained “largely underexplored.” Authorities argued this inactivity hindered Senegal’s broader goals of growing its oil and gas sector and capitalising on offshore opportunities following recent discoveries and development in other parts of its offshore basin.
Senegal’s action is part of an emerging trend across African oil-producing nations seeking to reclaim and reallocate underutilised oil and gas assets awarded during earlier licensing rounds. Governments are confronting domestic pressure to convert licences into productive ventures that deliver jobs, revenue and energy security, rather than allow them to remain speculative holdings with limited economic impact.
The revocation has also drawn renewed scrutiny to Atlas Oranto’s broader activities in the region. While the company lost its licence in Senegal, it continued to pursue exploration opportunities elsewhere; for instance, in Liberia, where new production-sharing contracts involving Atlas Oranto Petroleum International Ltd covering four offshore blocks were ratified in September 2025, highlighting contrasting regulatory approaches within West Africa.
Senegal now controls the Cayar block and could seek new investors or operators willing to meet the financial and technical requirements needed to advance exploration and drilling on the acreage. The government’s move sends a strong message to global energy firms that regulatory compliance, financial guarantees and demonstrable progress on work programmes are essential prerequisites for maintaining exploration rights in a competitive and rapidly evolving energy landscape.
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