The decision affects the Cayar Offshore Shallow exploration licence, a block covering about 3,600 square kilometres north of the Dakar peninsula.
Senegal has revoked the offshore exploration rights held by Atlas Oranto Petroleum, citing the Nigerian company’s failure to meet financial and operational obligations.
The decision affects the Cayar Offshore Shallow exploration licence, a block covering about 3,600 square kilometres north of the Dakar peninsula.
Atlas Oranto Petroleum is a privately owned upstream oil and gas firm founded by Nigerian energy entrepreneur Arthur Eze.
Senegal said Atlas Oranto did not provide the required bank guarantees and carried out only minimal exploration work since the licence was awarded in 2008, despite receiving several extensions, Business Insider Africa reports.
Under the supervision of Minister Birame Souleye Diop, the Ministry of Energy and Petroleum formally withdrew the licence in September 2025, saying the company repeatedly failed to meet contractual obligations.
Senegal said the move was part of a broader effort to enforce compliance and tighten regulation in the energy sector under President Bassirou Diomaye Faye’s administration.
The government has emphasised a push to rapidly monetise hydrocarbon resources and ensure licences result in real investment and drilling activity.
Industry accounts referenced in early 2026 confirmed that the block saw little meaningful seismic or drilling activity during the licence period.
The Cayar block is considered oil-prone but underexplored, with several leads identified through seismic surveys but no wells drilled.
The revocation reflects a broader trend across Africa, where governments are reclaiming underutilised oil and gas licences signed during earlier exploration cycles.
Authorities have faced growing pressure to ensure petroleum rights translate into investment, drilling and production rather than being held for speculative gain.
The Senegal decision has also drawn attention to Atlas Oranto’s wider regional footprint, where its record has faced scrutiny.
In Liberia, developments in 2025 showed a contrasting regulatory approach. In September, the Liberia Petroleum Regulatory Authority signed four production-sharing contracts with Atlas Oranto Petroleum International Ltd. covering offshore Blocks LB-15, LB-16, LB-22 and LB-24 in the Liberian Basin.
The agreements included a signature bonus reported at between $12 million and $15 million, alongside proposed investments exceeding $200 million per block. Liberian authorities said the deals were intended to revive a petroleum sector that has seen little activity for more than a decade.
However, the Liberian agreements quickly attracted criticism. The Economic Empowerment of Citizens Advocacy Forum called on the government to suspend the contracts, citing concerns over transparency, financial capacity and environmental risk.
Critics also questioned the structuring of signature bonuses into instalment-based payments, arguing that such arrangements weaken enforcement and reduce incentives for early-stage exploration in deep-water and high-risk offshore environments.
Senegalese officials said Atlas Oranto’s failure to provide guarantees or advance exploration activity was sufficient grounds for licence revocation, underscoring a governance approach that places delivery ahead of long-term optionality.