International
China and Nepal reach oil cooperation, restart projects worth one billion US dollars
Seetao 2026-05-20 10:56
  • Optimize pipeline cooperation rights and significantly reduce oil and gas transportation costs
  • Deepening energy cooperation between China and Nepal to help improve the quality and efficiency of the local petroleum industry
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Niger has reached a cooperation agreement with Chinese enterprises to officially restart two major oil projects in the country, with a total investment of 1 billion US dollars. The Niger side has also acquired a 45% stake in the oil export pipeline. On May 18, 2026, Niger's Foreign Minister Bakary Yaou Sangar é announced that Niger had signed multiple cooperation agreements with Chinese companies to fully restore local oil industry production capacity. The signing event was held in the capital Niamey, and the country's Prime Minister Ali Mahamane Lamine Zeine was present to witness it. The implementation of this cooperation signifies a new turning point in the year long friction between Niger and Chinese oil companies. After the political changes in July 2023, the country began to implement autonomous control policies in core mineral resources such as oil and uranium mines.

Promote steady increase in local daily oil production

The two major oil projects, Dinga Deep and Abolo Yagou, which have been restarted this time, have attracted a total of 1 billion US dollars in investment. The Nepalese Foreign Minister revealed that with this investment, the local daily oil production will increase from the current 110000 barrels to 145000 barrels, with the goal of achieving the production capacity target by the end of 2029. Moreover, the transportation cost of oil export pipelines has been significantly reduced, with single barrel shipping costs dropping from $27 to $15, which can reduce annual expenses by $106 million. The government of Niger has successfully acquired a 45% stake in WAPCO, which is a subsidiary of China National Petroleum Corporation and mainly operates cross-border oil pipelines connecting Benin. Previously, the Nigerian side did not hold any equity in the pipeline.

Benefiting the local community and easing tensions

The agreement clearly states that by 2030, 450 job opportunities will be provided for local people in Niger, and local enterprises will be given priority in obtaining project subcontracting cooperation qualifications. At the same time, the salary and benefits of Chinese and foreign employees on duty will be unified. Previously, three Chinese management personnel were required to leave the country, and the relevant positions have now completed personnel deployment. Both parties will initiate negotiations from June 2025 and gradually finalize various cooperation details. China has been involved in Niger's oil extraction since 2011, but due to the previous diplomatic differences between Niger and Benin, oil exports were temporarily hindered. Keywords: Engineering Construction, Construction News, Engineering Information

The uranium mining industry welcomes a new layout

On the same day, Niger officially announced the establishment of a new Teloua uranium mine management and maintenance enterprise, which will take over the related business from the former French mining company Orano. This foreign-funded enterprise has completed its nationalization and restructuring in 2025. The new enterprise has fully taken over the existing mineral assets, highlighting Niger's determination to further control local mineral resources and strengthen independent development of resources.Editor/Gong Ziwei

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