Senegal Plans $2–5 Billion Second Refinery to Boost Oil Processing and Cut Imports
Senegal plans to begin construction of a second oil refinery in 2026, aiming to expand domestic processing capacity and attract between $2 billion and $5 billion in new investment, according to Abib Diop, CEO of Société Africaine de Raffinage (SAR).
Diop revealed that potential investors from China, Turkey, and South Korea have already submitted financing proposals for the project.
The new refinery—informally dubbed “SAR 2.0”—will source most of its crude feedstock from the offshore Sangomar field, operated by Woodside Energy, with Senegal’s national oil company Petrosen holding a minority stake.
Production at the Sangomar field began last year, yielding approximately 34.5 million barrels annually, equivalent to 4.6 million tons of crude oil.
Currently, SAR, West Africa’s oldest refinery, processes about 1.5 million tons of crude per year, or roughly 30,000 barrels per day, but still struggles to meet domestic fuel demand.
Diop explained that the planned second refinery will add 4 million tons of annual processing capacity, helping to close Senegal’s supply gap and strengthen energy independence.
He added that by the project’s expected start-up in 2029, SAR aims not only to achieve self-sufficiency in petroleum products but also to export surplus output to regional markets.
While the refinery’s location and the government’s equity participation have not yet been finalized, Diop noted that investor interest continues to grow, signaling strong confidence in Senegal’s expanding energy sector.
