A 2,000 kilometers oil pipeline project has been commissioned in Niger. The military leaders in Niger commissioned the project with a goal of gaining access to international oil markets.
The oil pipeline which connects Niger and Benin was to be completed expected in 2022, but it faced delays due to the COVID-19 pandemic. A sum of US $6bn has been invested by the country’s government for the project, with US $4bn allocated for the development of oil fields and US $2.3bn for the construction of the pipeline.
This substantial investment is aimed at increasing daily oil production to 110,000 barrels, with a goal of reaching 200,000 barrels per day by 2026. The revenue generated from this new pipeline is intended to contribute to the sovereignty and development of Niger.
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Oil production in Niger
The oil pipeline will enable Niger access markets by utilizing the Benin port of Seme for export. The Prime Minister, Ali Mahaman Lamine Zeine, expressed that the revenue generated from this oil project would be utilized to enhance the sovereignty and development of Niger.
Mali and Burkina Faso’s energy ministers, who have also experienced military coups in the past two years and have expressed support for Niger’s new leadership, were present at the commissioning ceremony.
Niger’s estimated oil reserves in place are 3,754 million barrels, with 957 million barrels of recoverable reserves. Gas reserves in place are estimated at 34 billion cubic meters, with 24 billion cubic meters of recoverable reserves.
Niger’s current oil production capacity is 20,000 barrels of oil per day (Kbopd), primarily for domestic consumption and some exports to northern Nigeria. The Agadem area is a significant source of identified reserves, supplying oil to the SORAZ refinery.
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