Oranto Petroleum Clarifies Senegal Withdrawal Amid Contract Dispute
Oranto Petroleum, the African-focused oil exploration company owned by Nigerian billionaire Prince Arthur Eze, has provided detailed explanations regarding its departure from Senegal's offshore oil sector. This clarification follows the Senegalese government's announcement in January 2026 that it had revoked an offshore exploration license held by Atlas Oranto Petroleum, citing alleged failures to provide required bank guarantees and limited exploration activity on the block.
Investment Suspension Preceded License Revocation
In an official statement, Oranto Petroleum revealed that it had already suspended further investment in Senegal during 2025, well before the license revocation occurred. The company attributed this decision to what it described as a breach of agreed contractual terms by Senegalese authorities. According to Oranto, the dispute primarily revolves around a sudden policy shift that altered the financial guarantees required for its St Louis and Cayar Offshore Licenses.
Dispute Over Financial Guarantee Requirements
The core of the disagreement centers on a $25 million bank guarantee demand from the Senegalese government. Oranto Petroleum maintains that this requirement contradicted earlier agreements that permitted the company to provide a corporate guarantee instead. The company emphasized that this corporate guarantee structure had been extended to other international operators working within Senegal's energy sector.
"As a matter of fact, Oranto Petroleum in 2025 decided to suspend any further investments in the St Louis and Cayar Licenses after the Government of Senegal insisted on a US$25 million Bank Guarantee as against the agreed Corporate Guarantee," the company stated in its official release.
Rejection of Inadequate Investment Claims
Oranto Petroleum strongly refuted allegations that it failed to commit sufficient resources to its Senegalese projects, describing such claims as misleading and inaccurate. The company disclosed that it has invested more than $45 million in Senegal to date, covering various essential activities including:
- Seismic data acquisition and interpretation
- Acreage rental payments
- Social impact projects
- Training programmes for Senegalese nationals
The company asserted that all these investments were made in strict compliance with contractual obligations and that proper documentation exists to verify these expenditures.
Allegations of Targeted Treatment
Beyond the financial disagreements, Oranto Petroleum expressed concerns about what it perceives as unfair targeting by Senegalese authorities. The company described the narrative surrounding its operations as unjustified and potentially damaging to its reputation. According to Oranto, other foreign investors in Senegal's energy sector are also encountering operational and regulatory challenges, raising broader questions about the country's investment climate and regulatory consistency.
Company's African Track Record and Investment Concerns
Reaffirming its established presence in Africa's hydrocarbon sector, Oranto Petroleum highlighted its substantial continental investments exceeding $500 million across various exploration and development projects. The company emphasized its business model focuses on early-stage exploration and acreage derisking before partnering with third-party operators for full-scale development.
In its concluding remarks, Oranto stressed its commitment to the rule of law while warning against narratives that could potentially discourage foreign investment in Africa's energy industry. The company urged stakeholders across the continent to focus on policies that support sustainable development and long-term economic growth, emphasizing the importance of maintaining Africa's attractiveness to international investors.
