Niger has given Chinese oil companies 45 days to address alleged breaches of their petroleum agreements, including the repatriation of more than $5.2 billion in crude oil export revenues, as the military-led government increases pressure on its biggest oil-sector partner.
- Niger has given Chinese oil companies 45 days to resolve alleged breaches of petroleum agreements, mainly concerning the repatriation of crude oil export revenues.
- The government claims more than $5.2 billion in oil export revenue has not been returned to Niger since crude exports began in April 2024.
- Authorities accuse CNPC, WAPCO, and SORAZ of not fulfilling contractual obligations, causing significant losses to the national treasury and local banks.
- Niger’s export earning repatriation rate is only 6%, far below the West African regional average of over 70%.
According to Anadolu Agency, Foreign Minister Bakary Yaou Sangaré announced the deadline on Wednesday in a statement read on state television.
Sangaré, who chairs the committee responsible for oil negotiations, said the committee had issued specific demands to China National Petroleum Corporation (CNPC) and its partners, West African Oil Pipeline Company (WAPCO) and the Zinder refinery operator SORAZ.
Niger’s authorities accuse the companies of failing to meet some of their contractual obligations to the state.
Niger says oil revenues have not been repatriated since 2024
“Since the beginning of crude oil exports in April 2024, more than 3,000 billion CFA francs in revenue has not been repatriated to Niger by CNPC,” Sangaré said, according to Anadolu Agency.
The minister said the alleged shortfall had cost Niger’s public treasury CFA17.4 billion in revenue and deprived local banks of CFA3 trillion in deposits and corresponding financing capacity.
He also said Niger’s repatriation rate for export earnings stood at 6%, compared with an average of more than 70% across the West African Economic and Monetary Union.
Sangaré warned that the government would draw consequences from whether the companies complied with the demands before the 45-day deadline expires.
Anadolu Agency reported that no response from CNPC had been recorded by midday GMT on Thursday.
CNPC has been a central player in Niger’s oil industry since beginning operations in 2011. The company’s partnership with Niger includes the SORAZ refinery, while WAPCO operates the export pipeline linking the Agadem oilfields in eastern Niger to the port of Sèmè-Kpodji in Benin.
The pipeline, which stretches more than 2,000 kilometres, has enabled Niger to move crude oil to international markets. The latest ultimatum places the future of that partnership under pressure as Niamey seeks the repatriation of export earnings it says remain outside the country.