Italian energy major Eni has officially entered Gambia’s upstream petroleum sector after signing a petroleum exploration, development and production licence agreement for the offshore Block A1, marking the country’s most significant upstream investment commitment since the departure of BP.
The agreement, signed between Eni and Gambia’s Ministry of Petroleum, Energy and Mines, grants the company rights to explore Block A1, a deepwater offshore acreage covering approximately 1,300 square kilometres in water depths ranging from 1,250 metres to 3,300 metres. The licence was signed by Gambia’s Minister of Petroleum, Energy and Mines, Nani Juwara, who described the agreement as a major step toward unlocking the country’s offshore petroleum potential while ensuring long-term benefits for Gambians through a carefully negotiated fiscal and commercial framework.
According to Eni, Block A1 is located within a section of the Atlantic Margin where significant hydrocarbon discoveries have already been made. The company said the award aligns with its strategy of building a geographically diversified exploration portfolio across proven, emerging and frontier basins.
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Deed of assignment
The deal marks Eni’s first entry into The Gambia and expands its growing presence across West Africa, particularly within the highly prospective MSGBC Basin, which stretches across Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea. As part of the agreement, the Gambian government will transfer its 10% carried participating interest in Block A1 to the Gambia National Petroleum Corporation through a deed of assignment. The corporation will manage the stake on behalf of the state and will retain an option to acquire an additional 5% interest if a commercial discovery is made.
Minister Juwara said the agreement secures a broad range of economic benefits for the country, including royalties, taxes, signature and production bonuses, local content obligations, training programmes, capacity-building initiatives and data sales revenue. The block has a complex exploration history. It was previously held by African Petroleum Corporation before the licence was revoked by the Gambian government in 2017 over alleged contractual non-compliance. BP later acquired rights to the acreage but exited in 2021 without drilling an exploration well, eventually reaching a settlement with the government regarding outstanding licence commitments.
Following BP’s departure, the government reopened the acreage and subsequently selected Eni as the preferred operator after a detailed assessment process. Speaking at the signing ceremony, Cany Jobe emphasized that the agreement should not be interpreted as an oil discovery but rather as the beginning of a new phase of scientific assessment of the country’s offshore petroleum potential.
She noted that although The Gambia lies within the same geological basin that has delivered major discoveries elsewhere in the region, the country has yet to establish commercially viable oil or gas reserves. According to Jobe, Eni underwent extensive technical, financial and operational evaluations before being awarded the licence.
Representing Eni, Aldo Napolitano said the company would now begin detailed geological and geophysical studies to assess the hydrocarbon potential of Block A1. He acknowledged the high-risk nature of frontier exploration but pledged to deploy advanced technologies and industry expertise throughout the programme.
Eni’s move comes as interest in the MSGBC Basin continues to grow following major regional developments. Senegal began oil production from the Sangomar Field in 2024, while the Greater Tortue Ahmeyim Project exported its first LNG cargo in 2025, boosting confidence in the basin’s broader hydrocarbon potential.
Despite the optimism surrounding the licence award, commercial production remains years away. Eni must first complete exploration studies, identify drilling targets and evaluate whether any discovered resources can be developed economically. Deepwater exploration remains among the most technically demanding and capital-intensive segments of the global energy industry. Nevertheless, Eni’s entry represents one of the strongest endorsements yet of The Gambia’s offshore prospects and offers the country a renewed opportunity to determine whether the geological success seen in neighbouring Senegal and Mauritania extends into its own waters.
