Senegal oil blocks lead Eni into five-area offshore study

Senegal oil blocks are the focus of an Eni study pact covering five offshore areas as Dakar seeks to restart exploration. The work precedes any drilling award.

Energy minister El Hadji Abdourahmane Diouf said Tuesday that Senegal and Italian oil company Eni (ENI.MI) signed a memorandum of understanding for preliminary work on blocks SN01M, SN02M, SN03M, SN07M and SN40M. The agreement covers technical studies and analysis, according to the minister’s statement.

Five blocks enter review

Eni will carry out the program at its own expense, a structure that keeps the early technical cost with the company while Senegal tests investor interest in its offshore acreage. The studies are intended to improve geological and geophysical understanding of the five blocks, the statement said.

The pact does not amount to a production decision or a confirmed discovery. The ministry did not disclose a study timetable, planned spending, license terms, seismic work volumes or any reserve estimate for the blocks.

The agreement sits within the government’s stated plan to resume oil and gas exploration and promote Senegal’s sedimentary basin. That wording points to an upstream reset focused first on data, acreage marketing and investor screening rather than immediate field development.

Petrosen keeps basin role

Senegal’s national oil company Petrosen will have a central role in developing the basin, according to the minister’s statement. The designation matters because national oil companies often shape how technical data, partner selection and future license negotiations move from study work to commercial terms.

For Eni, the memorandum gives access to early technical evaluation across five named offshore areas without a public commitment to drill. For Senegal, the arrangement adds a large international operator to its effort to keep exploration momentum visible to local and foreign investors.

Diouf said last week that Senegal planned to offer 109 oil and gas blocks to investors. The five Eni study areas therefore represent a limited first slice of a broader acreage pitch, rather than the full scope of the government’s planned offering.

Acreage pitch seeks investors

The industry effect will depend on whether the technical studies identify structures that can support further exploration spending. If Eni’s review improves confidence in the geology, Senegal could use the results to support its wider block offering and draw more bids from upstream companies.

If the work instead finds weaker prospects or higher technical complexity, the immediate effect would be to narrow investor appetite and place more pressure on licensing terms. In that scenario, Petrosen’s role would become more important in packaging data and managing expectations around the basin.

The macro channel is indirect at this stage. If the exploration campaign advances toward drilling and later development, Senegal could strengthen its position as a West African hydrocarbons destination; if activity remains limited to desk studies, the effect on trade, public revenue and energy balances would stay remote.

For Eni, the near-term outcome is a data option rather than a producing asset. A favorable technical result could add Senegal to the company’s portfolio of prospects, while an unfavorable result would limit exposure because the disclosed commitment is confined to preliminary studies.

The main open question is whether the five-block review leads to license negotiations, drilling commitments or a broader competitive round around the 109 blocks cited by Diouf. Until the ministry releases terms, timing and technical results, the agreement remains an early marker in Senegal’s exploration campaign.