Niger's oil potential, Chinese interests and military coup

The recent military coup in Niger has attracted the attention of several world powers that maintain a military presence in the country or have financial interests there, for a number of reasons. Beyond human rights issues, it is interesting to look at this problem through the lens of energy. In the energy sector, it is China—the second-largest foreign investor—that is building an extensive oil infrastructure in the country.

Regardless of the recent military and political events in Niger, it is worth noting at the outset that Niger became an oil producer in 2011 thanks to Chinese investment. A joint venture between the government and Petrochina led to the start of oil production in the Agadem area.

Interestingly, at the time, oil reserves were estimated at 140 million barrels concentrated in three fields: Agadi, Sokor and Goumeri. Over time, and thanks to exploration activities, reserves are now estimated at nearly six times that amount, or approximately 815 million barrels. Last but not least, the oil is high-quality light, sweet crude. This has made Niger a relatively attractive country for investors in the oil sector.