Senegal & Nigeria Deepen Energy Ties

Senegal and Nigeria are strengthening bilateral energy cooperation following a high-level working visit by Senegal’s Minister of Energy Birame Soulèye Diop and representatives from national oil company (NOC) Petrosen to Abuja this week. The Senegalese delegation met with Nigeria’s Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri and the Nigerian National Petroleum Company (NNPC), with the parties committing to strengthening cooperation across various fields.

The visit reflects a growing commitment by African producers to work together on refining, policy development, gas monetization and NOC collaboration – a strategy that is expected to strengthen African energy growth and industrialization.

Representing the voice of the African energy sector, the African Energy Chamber (AEC) has welcomed the collaboration, noting that stronger ties between African producers are critical at a time when the continent is seeking to attract investment, build infrastructure and expand intra-African energy trade. Greater cooperation between ministries and NOCs such as Petrosen and NNPC has the potential to support knowledge sharing, strengthen institutional capacity and accelerate the development of strategic projects across the oil and gas value chain, from upstream production to refining and gas commercialization. The collaboration also comes as African countries work to operationalize the Africa Energy Bank, with Senegal having already paid its capital contribution and positioning itself as an active participant in financing African energy projects.

“This is exactly the kind of collaboration Africa needs. When countries like Senegal and Nigeria work together – sharing knowledge, building infrastructure, strengthening NOCs and improving policies – we create an environment where investment can thrive and where Africa can take control of its energy future. Strong partnerships between African nations will be the foundation of energy security, industrialization and economic growth across the continent,” states NJ Ayuk, Executive Chairman, AEC.

The collaboration comes as a pivotal time for West Africa, with both Senegal and Nigeria looking at expanding their respective upstream and downstream markets. For Senegal, collaboration with Nigeria could serve as a catalyst for stronger governance structures and streamlined licensing procedures, enhancing the country’s attractiveness for foreign capital as it looks to scale production and bolster regional trade. Recent milestones have not only positioned Senegal as a producing market but demonstrated its potential for scalable investments.

Following the start of operations at the Sangomar oilfield and Greater Tortue Ahmeyim (GTA) LNG development in 2024 and 2025 respectively, Senegal has been working to scale output. Sangomar production has stabilized at around 100,000 bpd, with 36.1 million barrels generated in 2025 alone. From February 2025 to February 2026, GTA exported 24 LNG cargoes, alongside 1.6 million barrels of condensate marketed internationally.

Looking ahead, the country is looking at expanding both facilities, while advancing the development of the Yakaar-Teranga offshore project. The country is also looking at monetizing onshore resources. Petrosen has launched a $100 million exploration campaign targeting underexplored onshore basins, with goals to identify new crude discoveries by late-2026 through seismic acquisition, basin modeling and exploratory drilling programs.

Nigeria, meanwhile, remains Africa’s largest oil producer and is pursuing ambitious production targets of around 2 million bpd while simultaneously expanding its gas and refining sectors. To achieve this goal, the country rolled out a 2025 licensing round featuring 50 frontier and one deepwater block. The round targets $10 billion in investment over the next decade. In tandem, the country is re-engaging IOCs in deepwater exploration, with Chevron, ExxonMobil and Shell all advancing offshore projects. The NNPC is also pursuing an ambitious upstream drive, targeting $30 billion in investments by 2030.

Downstream, the country is looking at expanding the 650,000 bpd Dangote Refinery’s capacity to 1.4 million bpd, while the issuance of Permits to Access Flare Gas to 28 awardees in December 2025 is set to unlock $2 billion in gas investments. Cooperation with Senegal therefore aligns with Nigeria’s broader strategy of strengthening African energy markets while expanding regional trade in both crude and refined products.

The strengthening of ties between Senegal and Nigeria signals a broader shift taking place across Africa’s energy sector, where collaboration – rather than competition – is increasingly being seen as the key to unlocking investment, developing infrastructure and ensuring long-term energy security. By working together on refining, gas monetization, policy development and energy financing, Senegal and Nigeria are helping to set a precedent for how African energy markets can grow stronger through partnership, integration and shared strategic objectives.