Niger resumes oil exports through Benin after pipeline reopened

AFRICAN BUSINESS AND ECONOMYAugust 19, 2024 at 2:05 PM UTC

TLDR

Niger resumes oil exports after resolving border dispute with Benin, indicating a positive outcome for the Agadem oil field.
Crude shipments halted in June due to pipeline closure by China National Petroleum Corp, now resolved with an agreement between the countries.
Benin's Energy Minister and Nigerien Prime Minister confirm resumption of crude loading, signaling restored operations at the Sèmè Kpodji terminal.

Niger has resumed its oil exports after resolving a border dispute with neighboring Benin, according to government officials.

Crude shipments were halted in June when Niger closed a pipeline operated by China National Petroleum Corp. that connects the Agadem oil field to the Sèmè Kpodji terminal in Benin. The suspension was due to tensions at the border.

However, both countries have now reached an agreement, as confirmed by Benin's Energy Minister Samou Adambi, who stated that crude loading had commenced. The resumption of exports was also confirmed by Nigerien Prime Minister Ali Lamine Zeine's office.

Key Takeaways

Niger heavily relies on the Niger-Benin Export Pipeline, constructed by China National Petroleum Corporation (CNPC), as part of a $4.6 billion investment in the country's petroleum industry. This pipeline is crucial for Niger to repay a $400 million oil-for-cash loan from the state-owned Chinese company. The repayment of this debt is planned to be covered by the revenue generated from the oil shipments through the pipeline. This arrangement underscores the strategic importance of the pipeline to Niger's economy and its financial obligations.

Niger

Oil Exports

Oil Production

China National Petroleum Corp

Benin Republic

Economy

WAEMU