Niger and China end oil dispute after new investment agreements

Niger’s government has announced the end of its long-running standoff with Chinese companies involved in the country’s oil production and transportation sector, following nearly a year of negotiations. Relations between Niamey and its Chinese partners had deteriorated sharply after General Abdourahamane Tiani seized power nearly three years ago. Niger’s military authorities accused Chinese operators of disregarding local regulations and signaled their determination to regain greater control over the country’s oil revenues.

At the center of the dispute was the China National Petroleum Corporation (CNPC), the main player in Niger’s petroleum sector. Authorities accused the company of unpaid taxes and regulatory violations. At the height of the tensions, several Chinese executives and employees were ordered to leave the country, while CNPC was forced to vacate offices located within the Solux hotel complex in Niamey.

New agreements worth $1 billion

The dispute has now officially been resolved through a series of new agreements announced by the Nigerien government. The deals include a $1 billion investment package aimed at reviving two major oil projects. According to Niger’s foreign minister, the renewed investments could increase national oil production to 145,000 barrels per day by 2029.

Another key agreement grants Niger a 45% stake in WAPCo, the CNPC subsidiary responsible for transporting crude oil through the export pipeline. Authorities also announced an increase in the number of jobs reserved for Nigerien nationals within the sector.

Despite the announcement, some industry observers remain cautious. One sector insider described the measures as largely cosmetic, arguing that many of the commitments had already been included in previous contracts but were never implemented. Still, analysts note that the agreement at least brings an end to a prolonged deadlock that had become increasingly damaging for both Niger and its Chinese partners.