Senegal has withdrawn offshore oil exploration rights previously granted to Atlas Oranto Petroleum, a Nigerian-owned energy company, after determining that the firm failed to meet key financial and operational commitments tied to the licence.
The revocation affects the Cayar Offshore Shallow block, an area spanning roughly 3,600 square kilometres located north of the Dakar peninsula. The licence, which was awarded in 2008, had remained largely inactive despite multiple extensions granted to the operator over the years.
Atlas Oranto Petroleum, a privately held upstream oil and gas company founded by Nigerian businessman Arthur Eze, was accused by Senegalese authorities of failing to provide mandatory bank guarantees and carrying out only limited exploration activities throughout the duration of the licence.
According to official accounts referenced by Business Insider Africa, the Ministry of Energy and Petroleum, under the supervision of Minister Birame Souleye Diop, formally revoked the licence in September 2025 after concluding that the company had repeatedly breached contractual terms.
The Senegalese government said the decision aligns with broader reforms being implemented under President Bassirou Diomaye Faye’s administration, which has prioritised stricter enforcement of energy sector regulations. Authorities emphasised that petroleum licences must lead to concrete investment, drilling activity and resource development rather than being held without progress.
Industry records reviewed in early 2026 confirmed that the Cayar block saw little substantive seismic work and no drilling throughout the licence period. Although the area is regarded as oil-prone and several prospects were identified through seismic surveys, no wells were ever drilled.
Officials noted that the revocation reflects a growing trend across African energy-producing nations, where governments are reclaiming underutilised oil and gas assets issued during earlier exploration cycles. There has been increasing pressure on regulators to ensure exploration rights translate into tangible economic activity instead of speculative holding.
The move has also renewed scrutiny of Atlas Oranto’s operations across the region. While Senegal opted for a hard regulatory stance, developments in Liberia in 2025 highlighted a contrasting approach. In September of that year, the Liberia Petroleum Regulatory Authority signed four production-sharing contracts with Atlas Oranto Petroleum International Limited, covering offshore blocks LB-15, LB-16, LB-22 and LB-24 in the Liberian Basin.
Those agreements reportedly included signature bonuses estimated between 12 million and 15 million dollars, alongside proposed investments exceeding 200 million dollars per block. Liberian officials said the deals were aimed at reviving a petroleum sector that had experienced minimal activity for over a decade.
However, the Liberian contracts sparked controversy shortly after signing. Civil society groups, including the Economic Empowerment of Citizens Advocacy Forum, called for the suspension of the agreements, raising concerns about transparency, the company’s financial capacity and potential environmental risks.
Critics also questioned the decision to structure signature bonuses as instalment payments, arguing that such arrangements weaken regulatory leverage and reduce incentives for timely exploration, especially in deep-water and high-risk offshore environments.
Senegalese authorities maintained that Atlas Oranto’s inability to provide financial guarantees or meaningfully advance exploration work justified the licence withdrawal, underscoring a regulatory philosophy that prioritises delivery, accountability and measurable progress over prolonged optionality in the energy sector.
