Senegal has revoked Atlas Oranto Petroleum’s Cayar Offshore Shallow licence, citing failure to provide required bank guarantees and over 15 years of minimal exploration activity since the block’s award.
The decision followed a regulatory review conducted by Senegal’s Ministry of Energy and Petroleum, which found that Atlas Oranto breached key financial and contractual obligations attached to the licence.
The revocation underscores the government’s push to enforce stricter compliance in the oil and gas sector and ensure that licensed acreage translates into tangible investment rather than prolonged inactivity.
Officials at Senegal’s Ministry of Energy and Petroleum said the licence withdrawal was unavoidable after repeated breaches by the operator and years of regulatory forbearance.
The objective, officials said, is to ensure that Senegal’s natural resources are developed responsibly, transparently and in a manner that delivers value to the state.
The ministry stressed that exploration rights must be matched with clear financial capacity and execution, adding that prolonged inactivity undermines national development goals.
Atlas Oranto Petroleum was awarded the Cayar Offshore Shallow block in 2008 as part of Senegal’s earlier offshore licensing rounds, a period when regulatory enforcement was relatively loose, and operators were often granted wide latitude on work programmes.
Over time, the lack of progress increasingly conflicted with Senegal’s evolving petroleum framework, which now prioritises timely drilling, appraisal, and value creation.
By revoking the permit, Senegal has reclaimed full control of the Cayar Offshore Shallow acreage, sending a clear signal to operators holding underperforming licences.
For investors, the decision highlights a tougher operating environment where financial guarantees and work commitments are likely to be enforced more rigorously.
The licence was formally withdrawn in September 2025 under the supervision of Minister of Energy and Petroleum Birame Souleye Diop, following findings that Atlas Oranto failed to submit required bank guarantees and advance the block toward drilling and appraisal.
Senegal’s decision also comes amid efforts to consolidate recent offshore successes, including the Sangomar oil field and the Greater Tortue Ahmeyim LNG project, which have raised expectations around credible operatorship.
In 2018, Oranto Petroleum acquired a 90 percent stake in two exploration blocks located onshore Zambia.