Niger Signs $1bn Oil Deals With China Amid AES Push for Resource Control

Niger’s military-led government has entered into new oil agreements worth about $1 billion with Chinese energy companies as the Alliance of Sahel States (AES) intensifies efforts to strengthen control over natural resources and expand regional energy cooperation.

The agreements were signed during a ceremony chaired by Nigerien Prime Minister Ali Mahaman Lamine Zeine, who described the partnership with the China Oil and Gas Exploration and Development Corporation as a major boost for the country’s petroleum industry.

The latest development comes months after tensions between Niger and Chinese oil operators over labour issues and regulatory concerns. Since taking power in 2023, Niger’s military administration has pushed for greater state control over strategic sectors, including oil and uranium, in line with the sovereignty-driven agenda of AES member nations.

Under the new agreements, the Dinga Deep and Abolo-Yogou oil projects will be revived with planned investments estimated at $1 billion.

Niger’s Foreign Minister, Bakary Yaou Sangare, said the projects are expected to increase the country’s crude oil production from 110,000 barrels per day to 145,000 barrels daily by 2029.

He also disclosed that the cost of transporting crude through the Niger-Benin export pipeline has been reduced from $27 to $15 per barrel, a move expected to save the country more than $106 million annually.

As part of the agreement, Niger secured a 45 percent stake in the West African Oil Pipeline Company, a subsidiary of China National Petroleum Corporation, which manages the export pipeline connecting Niger to Benin.

The deal follows a series of reforms introduced by Niger’s military government to increase local participation in the oil sector. In 2025, Oil Minister Sahabi Oumarou directed Chinese oil firms and refinery operator SORAZ to end contracts of expatriate workers who had stayed in the country for more than four years.

The government had also expelled three senior Chinese oil executives amid disputes over labour conditions and salary differences between expatriate and local workers.

The newly signed agreements include plans to create about 450 jobs for Nigeriens by 2030, expand opportunities for local contractors, and reduce wage gaps between foreign and domestic employees.

The move highlights a growing shift among AES countries toward alternative international partnerships while increasing government influence over critical energy infrastructure and strategic resources.