Algerian Energy Cooperation Expands with Niger Transactions
Algeria finalized two major oil transactions with Niger in August 2026, marking a significant step in the energy cooperation between the two nations. These agreements include the export of Jet A1 aviation fuel from Algeria’s Adrar refinery to Niger, pursuant to a purchase-sale contract established with the Nigerien Petroleum Company (Sonidep). Simultaneously, the countries commenced the joint marketing of Nigerien Milk crude oil, with the inaugural shipment loaded on August 14, 2026, from the Sèmè maritime terminal in Benin, facilitating direct access to international buyers.
This collaboration extends to the development of Niger's promising Bilma oil block. Algerian Energy Minister Mohamed Arkab and Sonidep CEO Ali Seibou Hassane met in Algiers on August 29 to confirm the initiation of a revised feasibility study for the Bilma block and to approve its operational roadmap. Sonatrach engineers have estimated the Bilma site's production capacity at over 20,000 barrels of crude per day over a twenty-year operational period. Furthermore, Sonatrach's drilling subsidiary, Enafor, is actively engaged in an exploration campaign at the Kafra Sud-Est 1 well, targeting a depth of 3,900 meters within an exploration permit spanning 23,737 square kilometers, aiming to certify an estimated stock exceeding 260 million barrels.
The comprehensive energy partnership also involves technical expertise transfer, with Algerian firms Enageo and Naftal deploying seismic sensors and developing bitumen distribution networks to build capacity among Nigerien personnel. Discussions are ongoing to modernize the Zinder refinery in Niger, enhance local refining capabilities, and explore the supply of Jet A1 and road products, alongside plans for a future petrochemical complex in Dosso. Naftal's CEO, Djamel Cherdoud, recently hosted Sonidep CEO Ali Seibou Hassane to advance projects related to petroleum product storage, distribution, infrastructure development, training, and mutual experience exchange, with a follow-up meeting scheduled to expedite these initiatives.
These practical partnerships underscore Sonatrach's strategic expansion in Africa, aiming to establish itself as a significant force in the continent’s hydrocarbon development, from exploration to commercialization. This deepening energy collaboration coincides with the strengthening of diplomatic relations between Algeria and Niger, following a period of tensions in 2023, notably spurred by the official visit of Niger’s transitional president, General Abdourahamane Tiani, to Algiers. The initiatives highlight Algeria’s commitment to fostering economic ties and stability in the Sahel region.
