Arthur Eze-Owned Oranto Petroleum Opens up on Senegal Exit, Cites Contract Breach
- Oranto Petroleum exits Senegal's offshore oil sector following license revocation amid claims of financial disputes
- Our investment in Senegal was suspended due to a breach of contractual terms by the authorities
- Oranto Petroleum calls for broader support for foreign investment in Africa's energy sector amidst regulatory challenges
Oranto Petroleum, the African-focused oil exploration company owned by Nigerian billionaire Prince Arthur Eze, has explained the circumstances surrounding its exit from Senegal’s offshore oil sector, following the government’s decision to revoke one of its exploration licenses.
The clarification comes after Senegal announced in January 2026 that it had withdrawn an offshore exploration license held by Atlas Oranto Petroleum, citing alleged failures to provide required bank guarantees and limited exploration activity on the block.
Source: Twitter
Company says investment was suspended earlier
In a statement released cited by Daily Sun, Oranto Petroleum said it had already suspended further investment in Senegal in 2025, long before the license revocation, due to what it described as a breach of agreed contractual terms by the Senegalese authorities.
According to the company, the dispute centres on a sudden policy shift that altered the financial guarantees required for its St Louis and Cayar Offshore Licenses.
Dispute over $25 million bank guarantee
Oranto Petroleum said the Senegalese government demanded a $25 million bank guarantee, despite an earlier agreement that allowed the company to provide a corporate guarantee, a structure it claims was extended to other operators in the country.
“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.
It argued that the new requirement contradicted the original license terms and placed it at a disadvantage compared to other international operators.
Claims of inadequate investment rejected
The company also pushed back against claims that it failed to commit sufficient resources to the Senegalese projects, describing the allegations as misleading.
Oranto disclosed that it has invested more than $45 million in Senegal to date, covering seismic data acquisition and interpretation, acreage rental payments, social impact projects, and training programmes for Senegalese nationals, all in line with contractual obligations.
“These records exist and can be fact checked,” the statement noted.
Allegations of targeted treatment
Beyond the financial dispute, Oranto Petroleum said it believes it has been unfairly singled out by Senegalese authorities, describing the narrative around its operations as unjustified and damaging.
“It is worth mentioning that for reasons best known to the Government of Senegal, Oranto Petroleum has been singled out in this false narrative,” the company said.
It added that other foreign investors in Senegal’s energy sector are also facing operational and regulatory challenges, raising broader concerns about the country’s investment climate.
Track record across Africa
Reaffirming its credentials, Oranto Petroleum highlighted its long-standing role in Africa’s hydrocarbon sector, noting that it has committed over $500 million to exploration and development projects across the continent.
The company said its business model focuses on early-stage exploration and acreage derisking, before partnering with third-party operators for full-scale development.
Call to protect Africa’s investment image
Oranto concluded by stressing its respect for the rule of law and warning against narratives that could discourage foreign investment in Africa’s energy industry.
Source: Getty Images
The company urged stakeholders to focus on policies that support sustainable development and long-term economic growth across the continent.
Dangote, other local refineries move to slash petrol imports
Legit.ng earlier reported that Nigeria’s downstream oil sector is heading for a major reset as local refineries prepare to significantly cut petrol imports in 2026, driven by rising output from the Dangote Petroleum Refinery and growing contributions from modular plants nationwide.
Industry operators say the country already has enough installed refining capacity to meet domestic petrol demand, provided persistent challenges around crude oil supply and regulatory processes are resolved.
If these bottlenecks ease, Nigeria could sharply reduce its dependence on imported PMS and deal a major blow to fuel importers.
Source: Legit.ng
