NIAMEY, July 16 (Reuters) – The government of Niger has approved separate oil production and sharing agreements with UK-based firm Savannah Petroleum PLC (LSE: SAVP.L – news) and a subsidiary of Algeria’s state energy firm Sonatrach, a statement from the cabinet said on Thursday.
The deal with Sonatrach is over the Kaffra bloc in the northern region of Agadez, while the agreement with Savannah covers Agadem blocs R3 and R4, in the south east of the country near oil-producing neighbour Chad.
Savannah already operates in Agadem blocs R1 and R2.
The government statement, which followed a cabinet meeting, did not give any further details.
Niger is one of Africa’s newest oil producers and has awarded exploration contracts 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. (Reporting by Abdoulaye Massalaki; Writing by Bate Felix; Editing by Andrew Hay)
