BY: Hana Saada
ALGIERS- Sonatrach is preparing to resume activities in Niger, following its recent re-entry into the Libyan market. This announcement was made by the CEO of the state-owned group, Rachid Hachichi, during an inspection visit to the Oran province. The statement holds both economic and diplomatic significance, confirming the strength of the relationship between Algeria and Niger and dismissing any claims of deterioration in their ties.
Addressing this matter, the head of the African oil giant stated that the group is closely monitoring opportunities in the international energy market. Sonatrach is exploring possibilities to expand its operations through new projects and investments, especially in Africa, which has recently seen the emergence of new markets.
“Today, the group is present in Latin America, Europe, and Africa. Recently, the group has returned to the Libyan market, and soon we will resume activities in Niger,” affirmed Hachichi. In the Nigerien hydrocarbons market, the state-owned group is involved in a research-exploration project in northern Niger through its subsidiary Sipex (Sonatrach International Petroleum Exploration and Production Corporation).
The contract focuses on the exploration and research of hydrocarbons in the Kafra 1 block on the Algerian-Nigerien border, where a first discovery was made at the end of 2018. Apart from Sonatrach’s resumption of activity in the Nigerien market, this return suggests a thaw in foreign investment seven months after the coup that led to the overthrow of President Bazoum in July of the previous year. This move could pave the way for the resumption of the Nigerien part of the Trans-Saharan gas pipeline project, which is set to transport over 30 billion cubic meters of gas from Nigeria to the Algerian coast through Niger.
This project is of paramount importance to the region, as highlighted by the Nigerian Minister of Energy, Yusuf Maitama, who mentioned progress in the construction works, particularly on the Algerian and Nigerian sides, during the 7th Summit for Peace and Security in Africa in December 2023.
Speaking on this matter, the Nigerian minister stated, “Considerable progress has been made in the implementation of the project in two parts, notably in Algeria and Nigeria. On the Nigerian side, the construction of the Abuja-Kaduna-Kano line is progressing. It is essential to note that Kano is very close to the border with Niger.”
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