Niger’s military administration has entered into a new set of oil agreements with Chinese energy companies, signalling another major move by the Alliance of Sahel States (AES) to deepen energy cooperation and increase state control over key natural resources.
On Monday, Nigerien Prime Minister Ali Mahaman Lamine Zeine presided over the signing of a fresh oil partnership framework with the China Oil and Gas Exploration and Development Corporation, describing the arrangement as an important milestone for Niger’s petroleum industry.
The agreements follow months of strained relations between Niger’s authorities and Chinese oil firms over labour concerns and compliance with local regulations.
Since taking power in 2023, Niger’s military government has increasingly pushed to renegotiate foreign participation in sectors such as oil and uranium, aligning with a broader sovereignty-driven economic agenda shared among AES member countries.
Under the newly approved deals, two major oil developments — Dinga Deep and Abolo-Yogou — are set to resume operations with projected investments estimated at about $1 billion, according to AFP.
Niger moves to strengthen control over oil resources
During the signing ceremony aired on state television, Foreign Minister Bakary Yaou Sangare stated that the projects are expected to increase Niger’s crude oil output from 110,000 barrels per day to 145,000 barrels daily by the close of 2029.
He also revealed that transportation costs for crude exports through the Niger-Benin pipeline had been reduced from $27 to $15 per barrel, a development expected to save the country more than $106 million each year.
As part of the arrangement, Niger secured a 45% ownership stake in the West African Oil Pipeline Company, a subsidiary of China National Petroleum Corporation responsible for operating the export pipeline connecting Niger to Benin.
The latest accords come nearly a year after Niger’s military authorities intensified oversight of foreign involvement in the oil sector, especially regarding the large presence of Chinese expatriate workers.
In 2025, Oil Minister Sahabi Oumarou directed China National Petroleum Corporation and refinery operator SORAZ to end the contracts of expatriate staff who had spent more than four years working in Niger, according to Reuters.
That directive followed the expulsion of three senior Chinese executives from CNPC, the West African Oil Pipeline Company, and the SORAZ refinery during disputes linked to labour conditions and wage differences between foreign and local employees.
The new agreements also contain pledges to create approximately 450 jobs for Nigeriens by 2030, increase subcontracting opportunities for local businesses, and reduce salary inequalities between expatriate and domestic workers.
The deals reflect a new phase in China’s relationship with the Sahel region, as AES governments continue seeking strategic partnerships beyond traditional Western allies while expanding state influence over critical energy assets and infrastructure.