CFG, under the terms of its exclusive Partnership with the Government of Niger is currently in “on going negotiations” with a designated Ad Hoc Committee specifically set up to pin point certain concessions the Government would particularly like to develop through the offices of CFGNiger. Once the concessions have been selected, CFG will be actively looking for Investors/Joint venture Partners to develop the concessions. Other routes to fund the exploration of the concessions are also being considered including public offerings and the formation of private individual/institutions funding vehicles or funds.
Niger has great oil potential.
Geological research has shown potential oil fields in the country’s eastern region in the area where oil fields have been discovered in neighbouring Chad. The international oil companies, Exxon, TG World Energy Inc, and Hunt Oil are currently engaged in exploration activity in Niger.
In 1992, the Djado permit was awarded to Hunt Oil Company, and in 2003 the Tenere permit was awarded to the China National Petroleum. An ExxonMobil-Petronas joint venture was sold sole rights to the Agadem block, in the Diffa Region north of Lake Chad, but never went beyond exploration.
In June 2008, the government transferred the Agadem block rights to CNPC. Niger announced that in exchange for the US$5 billion investment, the Chinese company would build wells, 11 of which would open by 2012, a 20,000-barrel-per-day (3,200 m3/d) refinery near Zinder and a pipeline out of the nation. The government estimates the area has reserves of 324 million barrels (51,500,000 m3), and is seeking further oil in the Tenere Desert and near Bilma. The pipeline is in place and working
Its downstream oil industry is wholly dependent on refined petroleum products imported via the port of Cotonou in neighbouring Benin and from the refineries in Nigeria.
The Niger oil industry is regulated by its Ministry of Mines and Energy through the state oil company, Sonidep, which has responsibility for representing the government in all dealings concerning petroleum resources in the country.
Gazprombank (part of the Gazprom) in 2011 commenced exploration of Niger’s uranium and oil reserves having been awarded mining licences for two mining blocks in the northern Agadez region (Toulouk 2 and Toulouk 4). Government officials reported that expected exploration work on each permit to average US$ 5 million. Gazprombank’s oil exploration was set to take place between 2011 and 2014.