In Niger, the government signed several oil partnership agreements with China on Monday, May 18, in Niamey. According to Nigerien authorities, this marks the "resumption and intensification" of relations between Niger and China in the hydrocarbons sector. It is worth recalling that Niamey and Beijing had previously displayed their differences regarding the management of Niger's oil reserves. President Abdourahmane Tiani believed that these oil resources were not sufficiently benefiting Nigeriens, who are its rightful owners.

Decisions of the Council of Ministers of March 18, 2025

The Council of Ministers on March 18, 2025, for example, decided to standardize "the salary scale between expatriate employees and Nigerien employees" of the Zinder Refining Company (Soraz), the China National Petroleum Corporation (CNPC) which ensures the extraction of crude oil and Wapco, the company which manages the pipeline built to export Nigerien oil via Benin.

The government meeting also formalized the "Nigerization (nationalization) of posts", "the execution of subcontracting contracts by the Nigerien private sector", the "modification of the statutes of WAPCO to allow the opening of its capital to the Nigerien part" and the "designation of Nigerien representatives to operational positions with the operator China National Petroleum Corporation - Niger Petroleum (CNPCNP) with the same advantages as those granted to the Chinese".

Obtaining an "agreement in principle for a 45% stake for the State of Niger in the company WAPCO"

An institutional committee was then set up to discuss with the Chinese side. "After nearly a year of negotiations, compromises and consultations, the two parties have reached results described as significant achievements, particularly regarding local content, state participation and oil revenues," said the chairman of this institutional committee, Bakary Yaou Sangaré, on Monday.

Among the gains resulting from these negotiations is the "reduction of the pipeline transport tariff from $27 to $15 per barrel. This will allow the Nigerien government to realize estimated savings of over $106 million over twelve months." Niamey also obtained "an agreement in principle for a 45% stake for the State of Niger in the WAPCO company." Until now, the country held no such stake.

The parties also agreed on "the repatriation of revenues from crude oil exports to Niger, a measure intended to strengthen the national economy and the country's financial institutions."

A strong Nigerianization of positions, obtained

With regard to local content, the agreements foresee a sharp increase in the rate of Nigerianization of jobs in oil companies and their subcontractors, with several hundred additional jobs expected for Nigerians by 2030. At CNPCNP, Nigerianization will reach 60% of management positions and 90% of the overall workforce.

At Wapco, 60% of management positions will also be filled by Nigerians, as will 80% of operational positions. A significant nationalization of positions is also expected at Soraz.

The negotiations between the two parties also allowed for the harmonization of base salaries between expatriate and Nigerien staff and the restructuring of cross-debts between several companies in the Nigerien oil sector.