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The restart of oil exports marks a significant change in Niger's geopolitical scene, influencing the strategy of Western allies and how China invests in Africa.
With the Niger-Benin pipeline back in action, thanks to the China National Petroleum Corp (CNPC), Niger is on its way to paying off a $400 million oil-for-cash loan from China. The agreement to resume operations came after resolving a border spat with Benin, which had previously put a hold on crude shipments since June.
Niger’s oil exports are kicking off again now that a deal has been struck with Benin. After shutting down crude transfers in June, due to the pipeline closure linking the Agadem oil field to Benin's Sèmè Kpodji terminal, the country is back in business. Benin’s Energy Minister, Samou Adambi, shared the good news with reporters, noting that they started loading crude that very morning. The confirmation came from the office of Prime Minister Ali Lamine Zeine as well.
With a 1,950 km-long Niger-Benin Export Pipeline built by CNPC, Niger looks to leverage this infrastructure to pay back that hefty $400 million loan. It’s anticipated that the revenue from oil shipments will help settle the debt. This remarkable pipeline, with a capacity of 110,000 barrels per day, is set to quintuple Niger’s crude production, turning the country into a noteworthy exporter. Before this pipeline was built, Niger was churning out just 20,000 barrels per day, primarily for domestic use due to the absence of an export route. Savannah Energy Plc, the only Western player in Niger, is gearing up to bring an additional 1,500 barrels per day online before scaling up to 5,000.
In a twist of fate, CNPC was on the brink of transforming Niger's oil sector when President Mohamed Bazoum was ousted in 2023 by his own presidential guard. This shift led to a series of sanctions from ECOWAS and condemnation from the West. Abdourahamane Tchiani took over the reins, marking a departure from Niger’s previous pro-West stance under Bazoum, who was seen as a bulwark against extremism in the Sahel. Tchiani has taken a different route, moving away from ties with France, Niger's old colonial power, to foster relationships with Russia.
In an interesting turn of events, over the last decade, China has shifted gears from what was known as the "Angola model." Instead of focusing on oil-backed loans for building essential infrastructure across Africa, China is now having more conversations with Gulf countries and Russia, looking for partnerships with stronger production setups.
Source: Oilprice
#Niger #OilExports #Geopolitics #China #EnergyNews #GlobalEconomics #Africa
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Bandits release video of abducted student of Zamfara State College of Art & Science, ZACAS, Gusau, Umulkhairu Musa & five others crying for help in a thick forest, demand N12m ransom. They were abducted along Birnin Magaji-Kaura Namoda road while returning from a wedding ceremony
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