Senegal has cancelled offshore exploration rights previously held by Atlas Oranto Petroleum, the privately owned oil and gas company founded by Nigerian energy businessman Arthur Eze, reflecting a stricter regulatory approach toward petroleum licences that have remained inactive for long periods. The Senegalese authorities withdrew the Cayar Offshore Shallow exploration licence after concluding that Atlas Oranto failed to submit the necessary bank guarantees and undertook only limited exploration work since the block was granted in 2008, despite multiple extensions.
The licence area spans roughly 3,600 square kilometres north of the Dakar peninsula and is regarded as prospective for oil, yet it remains largely unexplored. Under the oversight of the Minister of Energy and Petroleum, Birame Souleye Diop, the ministry officially revoked the licence in September 2025, citing the company’s repeated inability to meet financial and contractual requirements. Industry sources cited in early 2026 indicated that the block saw little substantive seismic work or drilling throughout the licence period, with no wells drilled despite earlier surveys identifying potential prospects.
By taking back the block, Senegal has underscored its commitment to enforcing compliance and strengthening oversight of petroleum rights holders under President Bassirou Diomaye Faye’s administration. Officials described the action as part of a wider policy shift aimed at ensuring oil and gas licences result in real investment, exploration and production, rather than being retained for speculative purposes. The decision places Senegal among a growing group of African oil-producing countries reviewing legacy oil and gas agreements signed during earlier exploration phases. Across the continent, governments are under increasing pressure to maximise the economic returns from hydrocarbon resources by holding licence holders to higher performance and financing standards.
The revocation has also renewed attention on Atlas Oranto’s wider regional operations, where its track record has drawn mixed reactions. In contrast, Liberia adopted a different regulatory stance in 2025, when 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 contracts, signed in September, reportedly included signature bonuses ranging from $12 million to $15 million and proposed investments of more than $200 million per block. Liberian officials presented the agreements as a bid to revitalise a petroleum sector that has experienced limited activity for over a decade. However, the deals quickly faced criticism from lawmakers and civil society organisations.
The Economic Empowerment of Citizens Advocacy Forum called for the suspension of the contracts, citing concerns over transparency, Atlas Oranto’s financial strength and possible environmental risks.Critics also raised questions about the structure of the signature bonuses, which were to be paid in instalments, arguing that such arrangements weaken enforcement mechanisms and reduce incentives for early-stage exploration, particularly in high-risk offshore environments. Senegalese officials said Atlas Oranto’s inability to provide bank guarantees or meaningfully advance exploration over nearly 20 years justified the revocation, signalling a governance approach that places delivery and accountability above long-term optionality in the management of petroleum assets.
Source: https://businessday.ng/
