Niger Republic Resumes Oil Exports After Resolving Border Dispute with Benin
Niger has resumed its oil exports following a crucial agreement with neighbouring Benin, effectively ending a recent border dispute that had halted crude shipments.
The resumption of exports marks a pivotal moment for Niger’s economy, as it navigates complex geopolitical tensions and seeks to solidify its position as a major player in the global oil market.
Recall that oil exports from Niger had been suspended since June after Benin closed a pipeline operated by China National Petroleum Corporation (CNPC) that transports crude from Niger’s Agadem oil field to the Sèmè Kpodji terminal in Benin.
The closure of the pipeline, which spans 1,950 kilometers, brought Niger’s oil exports to a standstill and raised concerns about the country’s ability to meet its financial obligations.
On Monday, Benin’s Energy Minister, Samou Adambi, confirmed that the impasse had been resolved.
“We’ve reached an agreement. Loading of crude started this morning,” Adambi told reporters.
This was further corroborated by a statement from the office of Niger’s Prime Minister, Ali Lamine Zeine, which confirmed that the resumption of oil shipments was now underway.
The Niger-Benin Export Pipeline, constructed by CNPC at a cost of $4.6 billion, is a cornerstone of Niger’s petroleum industry.
The pipeline is essential for Niger to repay a $400 million oil-for-cash loan from the Chinese company, according to Oil-Price, an online news site.
The revenue generated from the resumed oil shipments is crucial for Niger’s economic stability, as it plans to use these funds to clear its debts and fuel further development.
The pipeline, which has a capacity of 110,000 barrels per day (b/d), is expected to increase Niger’s crude production five-fold, transforming the country from a modest producer into a significant exporter.
Before the pipeline’s construction, Niger produced only 20,000 b/d of crude, primarily for domestic use due to the absence of an export route.
The resumption of oil exports comes at a tumultuous time for Niger, following the overthrow of President Mohamed Bazoum by his presidential guard in 2023.
The coup, which brought military ruler Abdourahamane Tchiani to power, led to widespread sanctions from the Economic Community of West African States (ECOWAS) and condemnation from Western nations.
Under Bazoum, Niger was seen as a key ally of the West and a critical player in the fight against extremism in the Sahel region. However, Tchiani’s regime has taken a different approach, severing ties with France, Niger’s former colonial ruler, in favor of closer relations with Russia.
China’s role in Niger’s oil industry is emblematic of its broader strategy in Africa.
Over the past decade, China has shifted away from its traditional “Angola model” of providing oil-backed loans for infrastructure projects in African nations.
Instead, Beijing is now focusing its investments on regions with more reliable production infrastructure, such as the Gulf countries and Russia.
As Niger navigates these geopolitical shifts, the resumption of oil exports is a critical step in stabilising its economy and reaffirming its place in the global oil market.
The agreement with Benin not only restores a vital export route but also underscores the strategic importance of regional cooperation in West Africa’s evolving energy landscape.
