Niger - Oil
In 2005 it was reported in the Nigerien press that the China National Oil and Gas Exploration and Development Corporation (CNODC), a subsidiary of the China National Petroleum Corporation (CNPC), was accused by some of its workers of mistreatment. CNODC has two oil exploration sites in Niger, northeast of the city of Agadez. The the Ministry of Mines and Energy shared the responsibility for enforcing workplace protections with the Ministry of Labor. The GON had a regional committee, based in Agadez, that investigated the complaints of these workers.
Exxon/Mobil made a discovery of approximately 350 million barrels of oil in Niger. However, they left Niger in 2006. With current high world oil prices, the Exxon/Mobil find was immediately commercially viable. Other firms continued to prospect for oil in Niger and with rising oil prices Niger's remoteness became a smaller barrier to oil production and exportation.
There were 14 blocks of territory assigned by the GON for oil exploration. Of these 14 blocks, 3 are presently attributed to Canadian, Chinese and Algerian firms. Ten other permits were being requested by three Australian, two English, two Canadian, two Chinese, one Algerian and one Nigerian firm. Sonatrach, the state owned Algerian oil and gas company, is exploring for oil in Niger in the Kafra block. It hoped to receive a permit for exploration in the Niger/Algeria border region of Tafassasset as well. The China National Petroleum Corporation (CNPC) via its subsidiary China National Oil and Gas Exploration and Development Corporation (CNODC) was actively searching for oil in the Bilma and Tenere blocks.
The Government of Niger's (GON) dream to build an oil refinery moved a step closer to becoming reality at an elaborate first-stone laying ceremony on October 27, 2008. The GON (all Cabinet Ministers, many National Assembly Members), traditional chiefs, political party heads, diplomatic corps dean (Chadian Ambassador) and Chinese Ambassador, business leaders and civil society leaders mobilized to Zinder (located approximately 900 kilometers east of Niamey and future site of the refinery) to attend the ceremony. Lauding President Tandja's vision and accomplishments such as the launches of the Kandaji Dam project and second Niamey bridge (to be built by the Chinese) to cross the Niger River, local chants filled the air calling for Tandja's third term. The refinery had long been touted as the answer to Niger's energy needs and economic development. The refinery's target completion year was 2011 and was expected to produce 20,000 barrels per day.
The GON Council of Minister's voted on June 2, 2008, to award to the state-owned Chinese national petroleum corporation in a US$5 billion dollar deal the Agadem block in N'Guigmi (located about 1500 kilometers northeast of Niamey) in the region of Diffa. The Minister of Mines and Energy Mohamed Abdoulahi helped broker the deal with the Chinese that the GON anticipates would facilitate Niger's entry into OPEC. The refinery is expected to produce 20,000 barrels a day, while Niger's internal oil consumption has been estimated at about 7,000 barrels a day.
The $US 1 billion investment to build the refinery was expected to cover construction costs, estimated at US$600 million, and the remaining US$400 million needed to build a pipeline connection to Chad. It was reported that about 1500 jobs would be created during the construction phase of the project and that 500 jobs will be created at the oil exploitation phase. The Council of Ministers in the project award phase required that the project be completed in three years or the Chinese face a financial penalty or possible or a retraction of the exclusive rights to explore in the Agadem block.
The Network of Organizations on Transparency and Budget Analysis (ROTAB) issued a statement noting the laying of the first stone for the refinery as an historic event for Niger, but criticized the opacity in the contract award process, including certain financial clauses and actions taken. It highlighted the GON failure to complete a study on the social and environmental impacts in the regions of the project exploitation. ROTAB called for more information on the additional revenue to become available for the national budget, as well as information on future investments necessary for Niger's development.
Construction work on the oil pipeline expected to link the oil wells of the Agadem bloc to the refinery currently under construction in Zinder commenced on 21 January 2010. The ceremony took place in the presence of the Adviser to the President for Energy and Mining Issues, the representative of the Minister of Environment and Anti-Desertification, and some prefects.
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