Niger is moving closer to becoming a significant oil producer as Algeria’s state-owned energy company Sonatrach advances a project estimated to hold about 260 million barrels of oil, deepening energy cooperation between the two countries.
The development comes as the AES member seeks to expand its oil industry beyond its existing production, attract investment and increase revenues from its hydrocarbon resources. Sonatrach, which has been involved in the Kafra project for more than a decade, has now moved into a new drilling phase
The project has remained largely at the exploration stage despite earlier discoveries, but Niger and Algeria have stepped up cooperation around Kafra as Niamey seeks to expand oil production and attract greater investment into its energy sector.
The Algerian energy company obtained a prospecting permit for the block in 2005, while a production-sharing agreement was signed with Niger and renewed in 2022.
Exploration has identified significant oil potential, with the project estimated to hold more than 260 million barrels. In March, Business Insider Africa reported that Sonatrach was preparing to begin drilling at Kafra, with operations expected to start in April.
