Niger and Savannah Petroleum have signed a production sharing contract (PSC) that will see the UK firm invest US$90mn in an oil project in the West African country next year
According to the country’s Ministry of Petroleum, the deal with Savannah Petroleum is seen as part of a drive to attract a broader range of investors into its nascent oil industry, Ventures Africa reported.
Adolphe Gbadigui, Ministry’s spokesperson, said that part of the money will be used to drill five exploration wells and conduct an environmental impact study at the project, which is located in the southeast region of the country.
One of Africa’s newest oil producers, Niger began pumping oil in 2011 as part of a US$5bn deal with China National Petroleum Corporation (CNPC) to develop the Agadem Block. It is expected to export around 80,000 bpd via a pipeline through neighbouring Chad and Cameroon from 2016.
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Savannah Petroleum signs PSC with Niger for onshore permit
