Senegal’s state refiner SAR (Société Africaine de Raffinage) has reportedly signed an MoU (Memorandum of Understanding) with Yamata for a new refinery with a capacity of 4 million metric tons per year (MMtpy), according to a report dated October 1, 2026. The new refinery is estimated to cost $2–3 billion. The MoU is said to formalize discussions already underway and does not represent a financing or investment commitment.
The project owner is SAR, Senegal’s state refiner. Yamata is reported to handle engineering, procurement, construction (EPC) and financing without requiring a sovereign guarantee from Senegal. The new refinery is designed to process Sangomar crude and other grades, and the proposal includes petrochemical activities.
The program also includes modernization of the existing Mbao refinery, estimated at $300–500 million. No process technology or licensor was mentioned in the announcement. Detailed engineering and financing arrangements still need to be finalized, and no construction start date has been announced.
The new refinery has a capacity of 4 MMtpy and a cost of $2–3 billion. Mbao modernization is estimated at $300–500 million, and the combined program at $2.3–3.5 billion. More than 15,000 direct construction jobs are expected.
The project aims to reduce Senegal’s reliance on imported petroleum products and to supply neighboring markets.
First, as the agreement is an MoU rather than a binding commitment, financing and engineering finalization remain to be completed before construction. Second, structures in which the contractor also arranges financing are used in emerging producers to reduce fiscal burden on governments, although verification of delivery capability is regarded as important. Third, the trend of refining domestic offshore crude to cut import dependence continues in West Africa. Fourth, the inclusion of petrochemical activities suggests the concept may evolve beyond a simple refinery into an integrated complex.
First, when the MoU converts into binding contracts and financing agreements. Second, whether process licensors and major equipment suppliers are disclosed. Third, whether Sangomar crude supply terms and the processed crude slate are clarified. Fourth, whether the Mbao modernization proceeds on a separate schedule from the new refinery.