Niger has signed a memorandum of understanding with Chinese state-owned oil giant China National Petroleum Corp (CNPC) worth $400 million linked to the sale of crude oil from its Agadem oilfield, Niger state television RTN reported.
Details of the agreement were not provided by the RTN, and Niger’s military authorities and CNPC have not commented on the specific structure of the agreements. However, according to information published by the government newspaper Le Sahel, under these arrangements, China will make an advance payment of $400 million to Niger, to be repaid from revenues generated by the sale of crude oil on the international market. This repayment will be spread over twelve months, with an interest rate of 7%.
Niger’s Prime Minister stressed that these funds will be managed transparently and will be used primarily for the defence and security of the country, which faces persistent challenges linked to the violent activities of jihadist groups affiliated to Al-Qaeda and the Islamic State. In addition, these resources will also be used to meet Niger’s financial obligations and to invest in agricultural development and improved medical services.
At the signing ceremony with the Chinese officials, Niger’s Prime Minister and Minister of Economy and Finance, Ali Mahaman Lamine Zeine, stressed the importance of Niger’s ties with the Chinese. “China is a great friend to Niger; we can never say it enough,” he said
“This signature demonstrates the friendship … and fruitful cooperation between the two states,” Chinese ambassador Jiang Feng said.
An export pipeline project backed by CNPC subsidiary PetroChina was officially launched in November 2023, linking the Agadem oilfield to the port of Cotonou in neighbouring Benin.
Previously, the West African country had a small oil refinery with capacity of around 20,000 bpd that mostly supplies Niger’s domestic fuel market.
