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Atlas Oranto Petroleum Ltd., the Nigerian independent oil and gas company founded by billionaire Arthur Eze, says it invested more than $45 million in Senegal before the government revoked its offshore exploration license, ending a long-running and largely inactive contract.
Company cites exploration, staff training spend
The company said the funds were spent on seismic surveys, acreage rentals, community projects and the training of Senegalese staff, countering claims that it failed to commit capital to the block. Atlas Oranto said it halted further spending in 2025 after authorities demanded a $25 million bank guarantee, a requirement it said differed from the corporate guarantees accepted from other operators in the country.
The statement follows Senegal’s decision to reclaim the Cayar Offshore Shallow block in September 2025, after regulators concluded the company had not met key obligations tied to the license. Officials said Atlas Oranto failed to provide mandatory guarantees and carried out limited exploration work since the acreage was awarded in 2008.
Atlas Oranto suspends projects after guarantee clash
The revocation, approved under President Bassirou Diomaye Faye’s administration, reflects a firmer approach to license enforcement as Senegal seeks to prevent blocks from remaining idle for years. Authorities said multiple extensions had been granted with little progress, leaving no basis to keep the contract in place. The move aligns Senegal with other African producers pushing operators to either invest or relinquish acreage.
Atlas Oranto said it suspended activity only after compliance terms shifted. “Oranto Petroleum in 2025 decided to suspend any further investments in the St. Louis & Cayar licenses after the government of Senegal insisted on a $25 million bank guarantee as opposed to the agreed corporate guarantees being provided by other operators in Senegal,” the company said.
The firm also pointed to its wider African operations, saying it has invested over $500 million across exploration and development projects, describing itself as an early-stage explorer that identifies prospects before partnering with third-party operators for drilling and development.
Atlas Oranto under pressure as oil licenses face scrutiny
Founded in 1991, the company has built a presence in over 20 countries, including Equatorial Guinea, South Sudan, São Tomé and Príncipe, Uganda and Zambia. But recent years have brought increased regulatory pressure. In April 2025, Equatorial Guinea demanded a $10 million license-related payment after revoking two Atlas Oranto permits over compliance issues.
Scrutiny has also intensified in Liberia, where lawmakers have warned against ratifying proposed production-sharing contracts involving the company. In an October 2025 letter, former House Speaker J. Fonati Koffa and Rep. Musa Hassan Bility described the agreements as “corrupt and dangerous,” raising concerns about transparency, financial terms and capacity.
Liberia’s government has defended the deals as a way to revive a petroleum sector dormant for more than a decade. Critics, however, point to Atlas Oranto’s record across West and Central Africa, saying licenses have often changed hands without wells being drilled. For lawmakers, the central question remains execution: whether promised investments translate into activity or remain on paper long after contracts are signed.
