The Société Nigérienne du Pétrole (SONIDEP), Niger’s national oil company, initiated its first exploration and production operations in the country’s desert east on Saturday.
This region has been under the operation of a Chinese company for crude oil extraction since 2011, as reported by the state radio on Sunday.
Expanding Beyond Petroleum Product Sales
SONIDEP, established in 1977, has primarily focused on the marketing of petroleum products. However, on Saturday, Niger’s Prime Minister, Ali Mahaman Lamine Zeine, announced during a ceremony in Haïdara, Diffa region, that SONIDEP is now venturing into the upstream sector of oil exploration and exploitation.
This marks a significant milestone for the company and a new chapter in Niger’s energy landscape.
Securing Economic Sovereignty
Colonel Ali Seibou Hassane, speaking at the ceremony, emphasized Niger’s determination to produce its own oil to ensure economic sovereignty and maximize benefits for its people. This move towards self-reliance in oil production reflects the country’s ambition to control its energy resources and drive economic development.
Four Oil Blocks Under Production Sharing Contracts
On March 2nd, the Council of Ministers, led by General Abdourahamane Tiani, head of the military regime in power since the July 2023 coup, approved two Production Sharing Contracts (PSCs) between the State of Niger and SONIDEP.
These contracts pertain to one oil block in Bilma (northeast, Agadez region) and three others in Agadem (east, Diffa region). The Agadem region already houses oil wells operated by the China National Petroleum Corporation (CNPC) since 2011.
Potential of Agadem and Bilma Blocks
While the Agadem blocks are considered small, they hold significant potential. The Bilma blocks, on the other hand, have proven reserves that could enable the commencement of development work for future exploitation.
Export Challenges Due to Diplomatic Tensions
Since 2011, Niger has been refining approximately 20,000 barrels of oil per day, mainly diesel and gasoline, in Zinder. The country’s official proven reserves are estimated to be around two billion barrels. However, a diplomatic dispute with Benin has hampered Niger’s oil exports.
A nearly 2,000 km pipeline is designed to transport crude oil from Agadem to the Beninese port of Sèmè-Kpodji, but relations between the two neighbors have been strained since the military coup. Niger has closed their shared border and shut off the pipeline’s valves, creating obstacles for oil exports.