Savannah Petroleum PLC on Monday said a transportation convention was signed between China National Petroleum Corp and the Republic of Niger in relation to the crude oil export pipeline from the Agadem Rift basin to the Atlantic coast in Benin.
Savannah’s flagship asset covers 50% of the “highly prospective” Agadem Rift basin of south east Niger. Therefore, the company said it is entitled to access such third-party infrastructure.
“From a Savannah perspective, it provides our company with a significant additional potential route to market, alongside the existing Zinder refinery, for our existing and future discoveries in Niger,” said Savannah Chief Executive Andrew Knott.
The oil & gas company said the pipeline is expected to run for 2,000 kilometres from the Agadem Rift basin in Niger to Port Seme on the Atlantic coast in Benin, and is China National Petroleum’s “largest ever” cross-border crude oil pipeline investment. Pipeline construction is expected to be complete by the end of 2021.
“The Niger-Benin export pipeline is expected to transform Niger into a major regional oil producer and deliver a material increase in the country’s economic growth rate,” added Knott.
Savannah shares were trading 4.1% higher in London on Monday at 23.90 pence each.