After months of strained ties over labour and regulatory disputes, Niger’s military-led government has signed a series of new agreements with Chinese firms to expand oil production and strengthen export infrastructure.

The agreements were officially signed on Monday during a ceremony in Niamey attended by senior officials from both countries, including Nigerien Prime Minister Ali Mahamane Lamine Zeine.

Niger Revives Major Oil Projects

One of the key parts of the agreement involves restarting the Dinga Deep and Abolo-Yogou oil projects with an investment worth $1 billion. Foreign Minister Bakary Yaou Sangare said the developments would significantly boost Niger’s oil production in the coming years.

“They will raise our production from 110,000 to 145,000 barrels per day by the end of 2029,” Sangare said during the televised ceremony. Chinese companies have been active in Niger’s oil industry since 2011 and remain major investors in the country’s energy sector.

Pipeline Export Costs Cut Sharply

Sangare also announced a major reduction in crude oil transportation costs through the export pipeline network. The cost of transporting oil has been lowered from $27 to $15 per barrel.

According to the minister, the reduction could save Niger more than $106 million every year. As part of the new agreements, Niger secured a 45% stake in the West African Oil Pipeline Company, a subsidiary of China National Petroleum Corporation. The company manages the major export pipeline that links Niger to neighbouring Benin.

Niger Seeks Greater Control Over Resources

Niger’s military government, which came to power after the July 2023 coup, has repeatedly promised to take stronger control over the country’s natural resources, especially oil and uranium. Relations between Niamey and China had become strained in recent months after Niger accused Chinese firms of failing to follow national labour laws.

Last year, authorities ordered three executives and workers linked to CNPC and its subsidiaries to leave the country.

Agreements Include Jobs and Local Business Support

The latest deals also focus on employment opportunities and support for local businesses. Sangare said the projects are expected to create around 450 jobs for Nigeriens by 2030.

He added that subcontracting opportunities would mainly benefit local companies. The minister also said the agreements aim to reduce large salary gaps between foreign employees and local workers. Negotiations for the deals reportedly began in China in June 2025.