• Wednesday, May 22, 2024
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Savannah Petroleum to invest $90m in Niger project

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UK-based firm Savannah Petroleum will invest $90 million in its project in Niger in 2015 after receiving a production-sharing contract from the government earlier this year, the spokesman of the ministry for energy and oil in Niamey said on Thursday.

Part of the money will be used to drill five exploration wells and conduct an environmental impact study at the project, which is in the south east of the country, said ministry spokesman Adolphe Gbadigui.

Niger is one of Africa’s newest oil producers and it announced the award of the contract to Savannah in June as part of a drive to attract a broader range of investors into its nascent oil industry.

The West African state began pumping oil in 2011 as part of a $5 billion deal with China National Petroleum Corp (CNPC) to develop the Agadem block. It is expected to export around 80,000 barrels per day via a pipeline through neighbouring Chad and Cameroon from 2016.