Senegal’s SAR signs Turkish partner for $2-3 billion refinery expansion

SAR targets 5.5 million tonnes of national capacity

Senegal’s Société africaine de raffinage, or SAR, has signed a memorandum of understanding with Turkish group Yılmaz Yalçınlar, known as Yamata, for the construction of a second refinery. Afrimag reports that the proposed plant is valued at between $2 billion and $3 billion and would have annual processing capacity of 4 million tonnes.

The agreement, signed on September 23, forms part of the SAR 2.0 program launched by Senegalese authorities in 2023. The new unit is intended to process crude from the offshore Sangomar field while retaining the ability to handle a range of other crude grades. Combined with the existing Mbao refinery, the project would raise Senegal’s national refining capacity to 5.5 million tonnes per year.

Yamata’s mandate covers engineering, procurement and construction. The Turkish company has also committed to mobilizing the required financing through its partners. The investment is expected to proceed without a sovereign guarantee from the Senegalese state, placing particular importance on the project’s commercial structure and financing terms.

Mbao modernization added to investment plan

The memorandum also provides for the modernization of the Mbao refinery, Senegal’s first oil refinery and currently SAR’s main processing asset. Mbao has annual capacity of 1.5 million tonnes. Afrimag puts the additional investment required for its upgrade at between $300 million and $500 million.

The next stage is the completion of detailed engineering studies, described as the final step before construction can begin. A start date has not been disclosed. Publicly available information also does not specify Yamata’s remuneration, the future plant’s operating arrangements or the full allocation of project risks.

SAR 2.0 was assessed as 10% complete in December 2024. Yamata entered discussions with Senegalese authorities in Istanbul in August 2025 on financing and implementation arrangements before formalizing its involvement through the memorandum. The broader national plan is included in Senegal’s 2025-2029 energy and mining development policy, which envisages a new-generation refinery linked to a petrochemical complex.

Fuel imports define the commercial challenge

The project addresses a large gap between Senegal’s domestic refining capacity and its demand for finished petroleum products. According to data from the National Agency of Statistics and Demography cited by Afrimag, Senegal imported an average of 3.45 million tonnes of finished petroleum products annually between 2021 and 2025. The average yearly bill was nearly CFA1.48 trillion, equivalent to about $2.5 billion.

Those average imports were more than twice Mbao’s current annual capacity. Until the second refinery becomes operational, Senegal will therefore remain heavily dependent on international suppliers of finished fuels, leaving domestic costs and availability exposed to global refining margins, freight rates and market disruptions.

If completed as planned, the additional capacity would allow Senegal to process more of its Sangomar crude domestically and substitute part of its finished-product imports. Capacity beyond local requirements could also be marketed in neighboring countries. The project consequently combines three objectives: improving domestic fuel security, retaining more refining value inside Senegal and establishing the country as a supplier to West African petroleum-product markets.