Woodside Energy, the operator of Senegal’s Sangomar oil and gas field, has initiated arbitration proceedings against the West African nation.
The dispute pertains to tax issues, with the company filing a complaint with the International Centre for Settlement of Investment Disputes (ICSID), a World Bank-affiliated body.
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The complaint, filed on 30 May, names Senegal’s Ministry of Petroleum and Energy as the respondent.
Woodside Energy, which holds an 82% participating interest in the project, previously took legal action in Senegal last August over a tax assessment dispute.
Despite efforts to resolve the outstanding tax issues, the company’s spokesperson stated that certain matters remain unresolved, prompting the request for international arbitration.
The spokesperson said via email, as quoted by Reuters: “Woodside strongly believes we have acted in accordance with applicable regulations… and there are no outstanding taxes payable.”
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By GlobalDataThe Senegal Energy Ministry has yet to comment on the matter.
The specific details of the complaint lodged with the ICSID have not been disclosed to the public.
This legal move comes after Woodside Energy previous challenged a tax assessment in the Senegalese court in August 2024, which the company considered unjustified.
In 2024, Senegal had set up a commission to investigate various oil and gas contracts the country has signed with multinational corporations.
Last month, Woodside Energy signed a non-binding agreement with Aramco to explore potential collaborations. This includes the possibility of Aramco acquiring an equity interest in the Louisiana LNG (liquefied natural gas) project in the US and securing LNG offtake rights.
