National Telescope national telescope newspaper
A Chinese state-owned petroleum company has halted all construction activities at the Agadem oilfield in eastern Niger following “terrorist” attacks, as reported by AFP on Wednesday.
The suspension follows a series of attacks on Niger’s oil infrastructure in recent months. These attacks include one claimed by rebels aiming to reinstate the coup-hit Sahel nation’s democratically elected president.
The China National Petroleum Corporation (CNPC) reported that the “security situation at the site has deteriorated” due to “terrorist groups” executing “numerous attacks targeting oil projects” on June 12.
“All construction projects at the Agadem site have been suspended, and the site’s employees have been placed on leave until the security situation improves,” stated a CNPC memo dated Sunday, seen by AFP.
The company assured that employees would receive “a wage in line with the standard leave rate” until the situation improves.
As of Wednesday noon, Niger’s military-led authorities had not responded to CNPC’s decision.
CNPC has been the country’s principal partner since oil production at Agadem began in 2011.
The oilfield is over 1,700 kilometres (1,056 miles) from the capital, Niamey, located in the eastern desert region of Diffa.
Its crude oil is exported via a pipeline connecting landlocked Niger to Atlantic ports in neighboring Benin, which has been targeted by rebels and other violent groups.
The Patriotic Liberation Front (FPL), which advocates for the reinstatement of President Mohamed Bazoum, claimed responsibility for targeting the pipeline on the night of June 16, describing it as “a first warning to the junta in Niamey.”
Niger’s military rulers later confirmed the act of sabotage, condemning it as a “terrorist act” by “malicious individuals.”
On June 12, the same day CNPC reported an attack on the Agadem oilfield, six Nigerien soldiers providing security were killed in the first attack on the pipeline by “armed bandits” in the south, according to the army.
In addition to rebel and bandit attacks, the 2,000-kilometre pipeline is also at the centre of a diplomatic dispute between Niger and Benin.
While the pipeline’s oil is crucial to both economies, tensions have been high since the July 2023 coup.
Under sanctions imposed by the West African bloc ECOWAS over Bazoum’s ousting, Benin closed its border with Niger.
Although Benin has since reopened its side, Niger’s military rulers have refused to reopen their side “for security reasons” and have halted the oil flow through the pipeline.
Niger’s proven oil reserves are estimated to be around two billion barrels, according to official figures.
This significant resource has made Niger a key player in the regional oil market, and disruptions to its production and export capabilities can have substantial economic ramifications.
The ongoing instability and security challenges have created an environment of uncertainty for international partners and investors in Niger’s oil sector.
