The African Energy Chamber will discuss oil, gas and energy opportunities in Niger at the ECOWAS Mining and Petroleum Conference February 16-18, 2022

The African Energy Chamber (www.EnergyChamber.org) will lead a delegation to Niger for the ECOWAS Mining and Petroleum Conference in Niamey, Niger, February 16-18, 2022. Leading the order of the day, discussions highlighting the significant opportunities that Niger offers investors, explorers, service companies and engineering companies in the oil and gas, mining and energy sectors. Discussions will also focus on the transformational impact that the oil and gas sector is likely to have on Niger’s economy over the coming decades, as well as ways in which the government can continue to improve the operating environment for attract even more energy investment, with a focus on creating well-paying jobs for Niger’s young population.

Niger’s oil and gas industry by 2025 is expected to account for around 24% of GDP, 45% of tax revenue and 68% of exports as well as 8% to 12% of formal employment in Niger. Niger’s current oil reserves are estimated at 3,754 million barrels of oil reserves in place and 957 million barrels of recoverable oil reserves. Current gas-in-place reserves are estimated at 34 billion cubic meters with recoverable reserves of 24 billion cubic meters.

A nation ready for major oil and gas investments

Niger is rapidly developing into an attractive destination for oil and gas investment under the leadership of the President, HE Mohamed Bazoum, take conscious and aggressive steps to set the stage for an exploration boom for more hydrocarbons in its prolific basins, as well as develop infrastructure to connect Niger as a producer with markets in the region and beyond .

First oil from Chinese major CNPC’s Agadem Rift Basin assets is expected in mid-2023 when the 1,275km Niger-Benin-crude pipeline is completed, months ahead of schedule and despite related delays to the Covid-19 pandemic. It also speaks to the success of the approach of the Minister of Petroleum and Energy, HE Mahamane Sani Mahamadou, of continuously involving all stakeholders in the pipeline project, to ensure that delays are avoided. The pipeline, when completed, will increase Niger’s daily production from 20,000 barrels per day to 110,000 barrels per day.

Niger’s relatively low production cost per barrel ($15, including research, development and exploitation) and an accomplished export pipeline should act as a mogul for new entrants interested in the 41 blocks currently available in Niger. The government is finalizing a review of its existing acreage, with a view to introducing regulations that will facilitate seismic acquisition and encourage drilling. Other successful players in Niger’s upstream industry include SIPEX, a wholly-owned subsidiary of Algeria’s SONATRACH and British independent Savannah Energy. The procedure for awarding oil blocks in Niger is quick and transparent. Savannah and SIPEX recently received government approval for record time extensions to their PSCs, ensuring contractual stability and the government’s commitment to providing explorers with the right incentives for asset development. Savannah has identified a total of 146 potential exploration targets to consider drilling in the future and achieved 100% success rates on five wells drilled after the first exploration drilling campaign in 2018.

The area of ​​the Agadem Rift Basin explored by CNPC has 2P recoverable reserves estimated at 815 million barrels and an exploration success rate of 81%. In addition to the favorable investment conditions, the tax regime in place, which includes exemption from VAT and customs duties (for the exploration phase and the first five years of operation), the Petroleum Tax included between 40% and 60%, a royalty rate of 12.5% ​​and a cost stoppage rate of 70% is very competitive compared to the world scale.

In November 2021, during his keynote speech at Africa Energy Week in Cape Town, Minister Mahamane Sani Mahamadou announced a strong push by his government towards gas monetization. This should include gas to power projects, as well as the development of pipeline infrastructure to markets in northern Nigeria.

“With its potential for oil and gas production, high success rates in oil exploration, an attractive tax regime, relatively low operational costs and various energy policies already in place, Niger is rapidly becoming the best example of what needs to be done to attract investment and doing this benefits everyone in the country,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.

Increase access to power

While Niger used to import 80% of the electricity, it only imports 60% of the electricity it needs and the trend should continue towards self-sufficiency. This represents an opportunity for project developers, energy companies, organizations and financiers to unlock access to electricity for millions of people who don’t have it. Niger has taken measures to improve access to electricity, such as national electricity access strategies such as the National Electricity Policy Document (DPNE) and the National Electricity Access Strategy. electricity, accompanied by a master plan for access to electricity by 2035. Niger has also ratified the Energy Charter (1991) and the International Energy Charter in 2015. The Energy Charter Treaty represents the best international instrument guaranteeing the protection of investments. In addition to oil investments, Niger has seen more and more solar energy investment opportunities with the hope of increasing the electrification of the country. The various ongoing projects include: the Niger Solar Electricity Access Project (NESAP) funded by the World Bank, the Niger Electricity Access Acceleration Project (HASKÉ) approved on December 10 2021 by the World Bank in the amount of $317.5 million to support grid electrification, solar PV mini-grids, off-grid solar electrification of public institutions and households, and clean cooking.

Distributed by APO Group on behalf of the African Energy Chamber.

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