Niger signs production sharing deal with SuntrustOil Company Nigeria Limited

oilpump niger-paul lowry flickrNiger had signed nine PSAs with five energy companies in July 2012. (Image source: Paul Lowry/Flickr)Niger has announced that it has signed a production sharing agreement (PSA) with SuntrustOil Company Nigeria Limited for an onshore oil block

The deal covers research exploration and production on Niger’s Tounfalis Block, with the state receiving 40 per cent to 55 per cent of the profit from oil revenues.

SuntrustOil Company Nigeria Limited will also be expected to pay royalties of 13 per cent for crude and three per cent for natural gas, Reuters reported.

China National Petroleum Corporation (CNPC) is reportedly Niger’s dominant international partner and has helped the country begin pumping oil in late 2011 as part of a US$5bn deal to develop its Agadem Block in the east.

State-owned CNPC is also looking for oil in the northern block of Bilma and co-owns the 20,000 bpd Soraz Refinery in partnership with the Niger government.

The West African country had signed nine PSAs with five energy companies in July 2012.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?