Niger Signs $400 Million Oil Deal with China's CNPC, Expanding Cooperation

Niger has signed a $400 million Memorandum of Understanding (MOU) with China National Petroleum Corporation (CNPC) for the sale of crude oil from the Agadem oilfield. The deal expands the existing cooperation between Niger and CNPC, which previously included a PetroChina-backed export pipeline to Cotonou port in Benin.

Under the new MOU, Niger will sell its crude oil directly to CNPC, further strengthening the economic ties between the two countries. The agreement provides Niger with a reliable buyer for its oil production and represents a significant expansion of the partnership between Niger and the Chinese energy giant.

Why this matters: The $400 million oil deal between Niger and China's CNPC underscores the growing economic cooperation between China and African nations. It highlights China's strategic interest in securing energy resources from Africa to fuel its economic growth.

Niger, a landlocked country in West Africa, has been seeking to develop its oil industry to boost its economy and reduce poverty. The Agadem oilfield, located in the eastern part of the country near the border with Chad, is operated by CNPC. The field has proven reserves of nearly 1 billion barrels of oil.

The existing export pipeline, a joint venture between CNPC and Niger's government, transports crude oil from the Agadem field over 460 km (285 miles) to the Cotonou port in Benin for export. The pipeline has a capacity of 20,000 barrels per day. "The MOU signed with CNPC will allow Niger to sell its crude oil directly to the Chinese company," said Niger's Ministry of Petroleum in a statement.

The deal with CNPC provides a long-term outlet for Niger's crude oil production. It is expected to generate significant revenues for the country, which ranks among the poorest in the world. The agreement also aligns with China's strategy of deepening its economic footprint in Africa through investments in energy and infrastructure projects.

Key Takeaways

• Niger signed a $400M MOU with China's CNPC to sell crude oil from Agadem oilfield.
• The deal expands existing cooperation, including a CNPC-backed export pipeline to Benin.
• The agreement provides Niger a reliable buyer and strengthens China-Africa economic ties.
• Niger aims to develop its oil industry to boost economy; Agadem field has 1B barrels.
• The MOU will generate significant revenues for Niger, one of the world's poorest countries.