China National Petroleum Corporation (CNPC) and the Republic of Niger have signed a transportation convention regarding the crude oil export pipeline from the Agadem Rift basin to the Atlantic Coast in Benin.
The deal was reported by Savannah Petroleum, whose assets covers 50% of the Agadem Rift basin of south-east Niger. The company said it is entitled to access such third-party infrastructure.
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The transportation convention was signed by Niger’s Minister of Petroleum Foumakoye Gado and CNPC Exploration and Development Company president Wang Zhong Cai.
As per the plans, the pipeline is proposed to run from the Agadem Rift Basin to Port Seme, on the coast of Benin. It would need a 2,000km connection, which is claimed to be CNPC’s largest-ever cross-border oil pipeline investment. Approximately 687km would be in Benin.
The pipeline is anticipated to be completed by the end of 2021 and expected to enable a throughput of 90,000 barrels a day.
Savannah Petroleum CEO Andrew Knott said: “The Niger-Benin Export Pipeline is expected to transform Niger into a major regional oil producer and deliver a material increase in the country’s economic growth rate. From a Savannah perspective, it provides our company with a significant additional potential route to market, alongside the existing Zinder refinery, for our existing and future discoveries in Niger.”
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By GlobalDataSituated in South East Niger, the Agadem Rift Basin covers an area of 30,000km². It has been in production since 2011 after the first development phase of the Agadem PSC area by a joint venture led by CNPC.
Savannah said additional exploration activity in the basin is supported by the large geological dataset managed by the Niger’s Ministry of Energy and Petroleum, featuring 13,000km² of modern 3D seismic, 30,000km of 2D seismic and more than 200 well data suites.
