Oil in Niger

Niger has in recent years attracted billions of dollars as investment in oil.

Exploration in Niger began in the 1950s. Drilling was done in the 60's by Petropar in Tamesna-Talak and Djado blocks. But the two main blocks that emerged were Djado Basin and the Agadem Basin

In the year 1992, the Djado permit was given to Hunt oil. In 1997 the Tenere permit was given to TG World Energy Inc.

In 2004 the Niger government approved the joint venture arrangement between CNPC International Tenere Limited (CNPCIT) and TG World Petroleum Limited (subsidiary of TG World).

In 2005, Petronas Carigali Niger Exploration & Production Ltd. (PCNEPL), announced that it had found hydrocarbons in the Agadem Block

Esso and Petronas had sole rights to the Agadem block. But in 2008, the rights were transferred to CNPC for USD$5 Billion investment. The oil reserves in the block are estimated at 325 million barrels. The company is also building a 20,000-barrel-per-day refinery in Zinder.

Other oil companies in the region are Shell, ExxonMobil and Chevron

Thus, though Niger isn't a major player in the oil business, the markets reached on hearing news of the coup. Tom Bentz, analyst at BNP Paribas Commodities said, "Markets took off at around the same time a Reuters story came out about gunfire erupting in the Niger capital in an apparent coup bid, mistaken by many as being Nigeria".

To be fair, other factors too contributed for the increase in oil prices-tension of Iran's nuclear program, weaker dollar and the report of EIA on heating oil supply falling by 1.4 million barrels. However, among the factors, the name confusion was the most important reason for the immediate oil price rise.

Yet, the fact remains that Niger is yet to produce oil for the world market.

Niger facts
Capital	Niamey
Neighbours	Nigeria, Benin, Burkino Faso, Mali, Algeria, Libya and Chad
Population	15.3 million
Currency	West African CFA franc
Official language	French. The country got independence from France in 1960
Main religion	Islam
Leading producer of Uranium	more than 8 percent of world's Uranium.