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(Ecofin Agency) – After a nine-day standoff, Benin has announced a partial lifting of the blockade on Niger’s crude oil exports passing through its territory. This move comes amid a diplomatic tussle between the two neighbors.
The blockade, imposed on May 6, aimed to pressure Niger to reopen its land borders, which have been closed since last year. Benin’s action underscored its determination to reopen formal economic exchanges, including oil transit, through its territory.
The decision to partially lift the blockade followed mediation led by Chinese officials who arrived in Cotonou on Wednesday morning. The Chinese delegation, headed by the Ambassador to Benin, engaged with the Beninese President and sector officials.
They agreed that Benin would allow Chinese vessels to load the first available volumes of Niger’s crude. However, the Beninese Energy Minister stressed that this authorization will not be a guideline for the operation of the Benin-Niger pipeline. He assured that Benin had no intention to harm Niger’s interests or those of their common partner, China.
The Benin minister said this thawing opens the door to talks between both parties but mentioned no date. The discussions aim to address urgent issues related to the proper conduct of operations.
For Niger, the resumption of crude shipments ensures timely repayment of its $400 million loan from China, secured against oil revenues. The loan carries a 7% interest rate and a one-year repayment period.
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