Niger petroleum crisis: oil eruption and $5.2 billion revenue dispute

Niger is facing a dual crisis in its petroleum sector involving an environmental disaster and a major financial dispute with Chinese operators.

An oil and gas eruption occurred at the Goumeri W-8 well in the Agadem block, operated by a subsidiary of the China National Petroleum Corporation (CNPC). The incident, which began on September 25, has been described by the Ministry of Petroleum as an environmental incident of “exceptional gravity.” Crude and gas have been projected over ten meters high, and the spill extends across several hundred meters, compromising the integrity of neighboring wells. While no deaths have been reported, two employees were hospitalized due to exposure.

Simultaneously, Nigerien authorities have issued a 45-day ultimatum to CNPC, the West African Oil Pipeline Company (WAPCO), and the SORAZ refinery operator. Foreign Minister Bakary Yaou Sangaré stated that more than 3,000 billion CFA francs in revenue from crude oil exports since April 2024 has not been repatriated to Niger. The government claims this failure has deprived the national treasury and local banks of significant funds, noting that Niger’s repatriation rate of 6% is far below the West African average of 70%.