Senegal has started producing oil for the first time, with President Bassirou Diomaye Faye assuring that profits will be “well managed” for the benefit of the nation. 

The Sangomar deep-water project, operated by Australian energy giant Woodside, aims to produce 100,000 barrels of oil per day and generate billions of dollars for Senegal’s economy.

“This is a historic day for Senegal and a key milestone for Woodside,” said Woodside CEO Meg O’Neill.

“We have never been so well positioned for opportunities for growth, innovation and success in the economic and social development of our nation,” said Thierno Ly, general manager of Petrosen.

President Faye, who was elected in April, has promised to renegotiate oil and gas contracts to ensure a fairer share of resources for the nation. 

“We’re the ones who promised you we’d renegotiate the contracts, and we’re going to do it. We’ve started already,” said Prime Minister Ousmane Sonko.

“The earnings will be well managed, and we have set up an inter-generation fund for the benefit of your generation and those to come,” President Faye told students on Tuesday.

The Sangomar project has an estimated reserves of 560 million barrels of oil and 1.3 trillion cubic feet of gas. Woodside owns 82% of the project, while Petrosen holds an 18% stake.

Senegal’s move to renegotiate oil and gas contracts has been seen by some analysts as making investors jittery, but government supporters say it is vital for the West African state to increase its stake in projects so that the nation benefits from its natural resources.

“We want to make sure that the resources of Senegal are used for the benefit of the Senegalese people,” said President Faye.

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