Niger Aims to Revamp Oil Collaboration with China’s CNPC Due to Local Content Breaches

Niger Aims to Revamp Oil Collaboration with China’s CNPC Due to Local Content Breaches

The Nigerien government has announced new measures to rebalance its collaboration with the China National Petroleum Corporation (CNPC), citing non-compliance with national reforms favoring local participation in oil exploitation.

Following a Council of Ministers meeting on March 18, authorities accused CNPC of using “subterfuge” and “false assessments of contractual documents” to avoid adhering to local content laws. The government, led by the National Council for the Safeguarding of the Homeland (CNSP), is demanding changes, including equalizing salaries between expatriate and Nigerien employees and increasing Nigerien representation in key oil sector positions.

Other proposed reforms include ensuring local companies execute subcontracting contracts, revising agreements to align with national interests, and improving oversight of the Niger-Benin pipeline’s financial commitments. The government also seeks to amend the statutes of West African Petroleum Operations (WAPO) to allow Nigerien ownership in the entity.

These actions align with Ordinance No. 2024-34 of August 2, 2024, which mandates the prioritization of Nigerien labor, local procurement, and technology transfers.

The announcement follows the recent closure of Soluxe International Hotel in Niamey, a Chinese-built property worth 25 billion CFA francs, whose operating license was revoked on March 6 due to regulatory violations.