The Petroleum Code establishes the rules pertaining to prospecting, exploration, development, exploitation, transport, storage of hydrocarbons as well as the liquefaction of natural gas. This law decrees that all petroleum in Senegal is the property of the Senegalese people. Furthermore, is defines that the State exercises sovereign rights for the above-mentioned activities.
The legislation determines that the Ministry of Energy (ME) is the competent authority for the its implementation, being the ME responsible for authorising activities under contracts for oil and gas prospecting, exploration and production. Furthermore, it recognizes the Senegal Petroleum Company (PETROSEN) as the National Oil Company, with at least ten per cent stake in all contracts. PETROSEN is responsible for developing the Senegalese sedimentary basins and undertaking, at the request and on behalf of the State, activities of prospecting, research, exploitation, transport and marketing of unrefined liquid and gaseous hydrocarbons.
The Petroleum Code outlines requirements relating to transparency (in line with the Extractive Industries Transparency Initiative), local content, environmental protection, health and safety issues, among others. It also outlines pertaining sanctions and the means of administrative supervision.
This regulation does not contain specific restrictions regarding methane emissions. However, it states that oil and gas companies must take necessary measures to prevent and combat environmental pollution, acting in accordance to international industry practice and applicable national legislation.
This law replaced the Petroleum Code from 1998 (Law 98-05 of 8 January 1998).