Savannah Petroleum wins contract for two oil blocks in Niger

oil niger-johnhill wikimedia commonsIn 2012, Niger had awarded nine production sharing contracts to five firms based in Nigeria, Australia and Bermuda. (Image source: John Hill/Wikimedia Commons)Niger has awarded a production-sharing contract to UK-based company Savannah Petroleum for two onshore oil blocks

Niger, one of Africa’s newest oil producers, began pumping oil in 2011 as part of a US$5bn deal with China National Petroleum Corporation (CNPC) to develop the Agadem Block, Reuters reported.

The country currently exports around 80,000 bpd via a pipeline through neighbouring Chad and Cameroon.

According to a government issued statement, a decree was adopted approving the production sharing contract between Niger and Savannah Petroleum for Blocks R1 and R2.

“These two blocks represent 50 per cent of the Agadem Block, for which CNPC was given exclusive oil exploration rights in 2007.” However, the statement did not say if the award of the production contract would affect the earlier exploration deal.

Sources close to the Oil Ministry said the new contract was part of a broader policy to promote the sector.

In 2012, Niger had awarded nine production sharing contracts to five firms based in Nigeria, Australia and Bermuda.

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