Hi all,
The attached article is a year old but it does help paint some background for the latest announcement.
http://cajnewsafrica.com/2016/03/24/reopening-ties-china-ties-a-masterstroke-for-senegal/
(cut and paste it yourselves if it don't work)
China has had a very active, yet familiar African, program: spend a few $B on a country's infrastructure, a few $100m on 'cultural' programs then aim for their resources.
China is now only just behind former colonial masters, France in terms of trade and foreign aid to Senegal.
It is an interesting association, given China and France are not natural allies (still a bit touchy about the loss of their spice garden...Vietnam). But who else better to turn to if you want to provide an economic/diplomatic counter-foil to your former Colonial master? And let's not also forget President Sall's political career was born in a heavy Socialist wrapping.
A lot of chat has been had about Total who, no doubt, are trying to position themselves but have yet to appear. Dont worry, they still will probably appear in some shape or form...just maybe not behind the FAR wagon. CNOOC and Total have several JVs together so anything is possible in the mix (but still interesting CNOOC has bumped out Total in the first round).
No doubt, today's tie-up with FAR is Government sanctioned..from both Senegal AND The Gambia (!). This is very important.
CNOOC could have gone alone into The Gambia, gazumped FAR easily, but didn't. They do have the money, they do have the expertise, and are world champions at garnering favours from new African regimes. But I'm getting the feeling that they may have been 'encouraged' to accompany FAR.
Let me expand and speculate a little (OK...a lot)
Macky's Sall's younger brother late last year got tossed from one of Whacko Frank Timmis's corporate governance abuse vehicles, Petro Tim. While Petro Tim has nothing to do with The Gambia, Frank still controls African Petroleum (another victim of corporate abuse) who is sitting on the very sexy A1 acreage to the immediate west of FAR's new Gambia farm-in and is also desperate for a farm-out and contract extension. Frank represents what was bad about the old Gambia administration and will, in my opinion, be lucky to survive.
The New administration of The Gambia is headed by Adama Barrow who got a lot of help from Sall to enable him to take over from the then resident depot, Jammeh. Timmis no longer has a political friend in Senegal (he screwed up with Sall's family) or The Gambia. Now... FAR would not have got the ERIN farm-in without some 'cross-talk' between Barrow and his new "brother" and new best mate, Sall so....
Favours are, in traditional African fashion, being called and returned.
....peering further down the vortex of bullsh*t speculation, I'd be surprised if FAR/CNOOC aren't also positioning themselves, as the anointed preferred first movers in The Gambia's new energy/political regime, to be in the front seats for African Petroleum's up-coming farm-out in The Gambia. (I would, however, be incredibly wary of any dealings with the corporately diseased Timmis group).
Anyway...Just love it when our small rounding error called FAR really does show it has local muscle way beyond its weight.
Methinks we could maybe expect more.
Cheers
(20min delay)