In Southern Niger, Africa’s Largest Oil Pipeline Comes to Life

In Gaya, in southwestern Niger, near Benin, the largest oil pipeline in Africa, nearly 2,000 km long, is taking shape.

Share:

Comprehensive energy news coverage, updated nonstop

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 €/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

Masked and helmeted Chinese and Nigerian workers hoist giant steel pipes over mounds of earth. Further on, smoke is coming out of the flashlights. Camouflaged in the millet fields, heavily armed soldiers are on the lookout.

In Gaya, in southwestern Niger, near Benin, Africa’s largest oil pipeline is taking shape. The pipeline is nearly 2,000 km long – 1,250 km of which is in Niger – and is intended to link the oil wells of the Agadem field in the far east, the scene of deadly jihadist incursions, to the Beninese port of Sèmè, from where Nigerien crude oil will be evacuated for the first time.

With a modest production of 20,000 barrels per day, Niger, one of the world’s poorest states, became an oil producer in 2011.

The black gold extracted by the China National Petroleum Corporation (CNPC) has so far been transported by pipeline to Zinder (south-central Niger), where it is refined.

Initially, Niger had planned to evacuate its crude through the Cameroonian port of Kribi via neighboring Chad, before opting for the Benin corridor.

Launched in 2019, the construction was supposed to be completed in 2022, but the Covid-19 pandemic has slowed it down, Nafiou Issaka, the deputy general manager of the West African Oil Pipeline Company (Wapco), the project owner, told AFP.

Wapco, a subsidiary of CNPC, is now working hard: more than 600 km of pipes have already been laid, “that is 51.5% of completion rate”, and Niger could sell its crude on the international market in “October or November 2023″, he hopes.

More than 700 soldiers are deployed to ensure “permanent security” of the structure even if a large part of the areas it crosses is so far spared from jihadist violence, a security source told AFP on condition of anonymity.

With the continued collapse of revenues from uranium, of which Niger is a major producer, the country is counting on black gold to boost its budget, much of which is being injected into the fight against jihadist groups in the southeast and west.

“Six billion dollars will be invested in the construction of this pipeline. It is the biggest investment of Niger (a former French colony) since its independence (in 1960)”, observes Kabirou Zakari, the director of Hydrocarbons at the Nigerien Ministry of Oil.

– “Smuggling” from Nigeria –

By 2023, oil production will be increased to 110,000 barrels per day, of which 90,000 barrels will be exported, he said.

Oil will thus “generate a quarter of the country’s GDP” (more than 13.6 billion dollars in 2020 according to the World Bank) and “about 50% of Niger’s tax revenues”, compared to 4% and 19% respectively at present, notes Mr. Zakari.

According to him, Niger’s reserves “are around two billion barrels”. And according to official projections, Niger will produce 200,000 barrels per day in 2026 and 500,000 barrels in 2030.

Sonatrach, the Algerian state-owned oil company, announced that it had made an “encouraging discovery” of oil in Kafra (north), a vast area of 23,737 km2 near the border with Algeria, which adjoins the Algerian oil basin of Tafassasset, also operated by Sonatrach.

The British company Savannah Petroleum claims to have discovered new deposits in Agadem where the Chinese are already operating.

Despite local production, the black market in hydrocarbons flourishes in Niamey and the major cities.

According to Niger Customs, this market “is regularly supplied by networks from neighboring Nigeria” and giant oil producer.

In the black market, a liter of gasoline costs 300 CFA francs (0.4 euros) compared to 540 CFA francs (0.8 euros) at the pump, a rate “considered expensive” by the unions. On Tuesday, Niger’s president, Mohamed Bazoum, denounced the extent of “fuel smuggling” from neighboring Nigeria, which has become a source of “supplies for terrorists” via the “Niger River (in dugout canoes) and on motorcycles” to Mali.

“We must find a good answer” to cut off “the terrorists” from this source of “fuel supply,” urged the Nigerien president, who was speaking to security forces in Dosso, the major southwestern city near Nigeria.

Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.
Hungarian oil group MOL and Croatian operator JANAF are negotiating an extension of their crude transport agreement as the region seeks to reduce reliance on Russian oil.
Rail shipments of Belarusian gasoline to Russia surged in September as Moscow sought to offset fuel shortages caused by Ukrainian attacks on its energy infrastructure.
Denmark is intensifying inspections of ships passing through Skagen, a strategic point linking the North Sea and the Baltic Sea, to counter the risks posed by the Russian shadow fleet transporting sanctioned oil.
Nicola Mavilla succeeds Kevin McLachlan as TotalEnergies' Director of Exploration, bringing over two decades of international experience in the oil and gas industry.
Sahara Group is making a major investment in Nigeria with seven new drilling rigs, aiming to become the country’s top private oil producer by increasing output to 350,000 barrels per day.
Senegal aims to double its oil refining capacity with a project estimated between $2bn and $5bn, as domestic demand exceeds current output.
Chevron is working to restart several units at its El Segundo refinery in California after a fire broke out in a jet fuel production unit, temporarily disrupting regional fuel supplies.
Ethiopia has begun construction of its first crude oil refinery in Gode, a $2.5bn project awarded to GCL, aimed at strengthening the country’s energy security amid ongoing reliance on fuel imports.

All the latest energy news, all the time

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3€/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.