By: Ecofin Agency

Niger and Algeria signed three memorandums of understanding (MoUs) in Algiers on June 2 to strengthen cooperation in oil exploration, drilling activities and petroleum products distribution. Subsidiaries of Algeria’s state-owned energy company Sonatrach signed the agreements with the Nigerien Petroleum Company (Sonidep).

The agreements form part of a working visit to Algeria by Niger’s Minister of Petroleum, Hamadou Tini, who is leading a delegation that includes officials from his ministry and Sonidep. The visit aims to deepen energy cooperation between the two neighboring countries.

The first memorandum, signed between the National Geophysics Company (Enageo) and Sonidep, covers the acquisition and processing of seismic data in Niger to support hydrocarbon exploration activities.

The second memorandum provides for the creation of a joint venture between the National Drilling Company (Enafor) and Sonidep. The new company will carry out oil and gas drilling operations across Niger.

The third memorandum establishes cooperation between the National Company for the Marketing and Distribution of Petroleum Products (Naftal) and Sonidep in petroleum product distribution in Niger.

The agreement also includes provisions for expertise transfer and the development of packaging facilities. In addition, the partners plan to establish a joint company dedicated to the manufacturing, storage and distribution of bitumen.

Sonatrach Chief Executive Officer Rachid Hachichi said the agreements open “promising prospects in strategic areas,” particularly through stronger geophysical studies and enhanced seismic data processing. He said the partnership would strengthen Niger’s exploration capabilities and encourage investment in the country’s hydrocarbon resources.

Sonidep’s Director General welcomed what he described as a new stage in bilateral relations. He said the partnership would allow Niger to benefit more extensively from Algeria’s expertise in the hydrocarbons sector and called for renewed momentum in the historical cooperation between the two countries to achieve their operational objectives.

Agreements Coincide With Strategic Energy Talks

The memorandums were signed during Minister Tini’s official visit to Algeria. The mission forms part of broader efforts to strengthen bilateral relations and coincides with Tini’s participation in the fifth ministerial steering committee meeting of the Trans-Saharan Gas Pipeline (TSGP) project.

The meeting brings together the ministers responsible for hydrocarbons from Algeria, Niger and Nigeria. The visit also follows the official trip to Algiers by Nigerien President Abdourahamane Tiani in February, during which both countries reaffirmed their commitment to expanding cooperation.

The hydrocarbons sector remains the backbone of Algeria’s economy. According to the International Monetary Fund, hydrocarbons account for an average of 92% of Algeria’s exports and 43% of government revenue. Earlier in May, Sonatrach launched the second phase of development of the Hassi Bir Rekaiz oil field through a contract worth more than $1 billion. The project includes a crude oil processing facility with a capacity of 31,500 barrels per day and targets production of up to 60,000 barrels per day over time.

Niger remains a relatively small oil producer despite the rapid expansion of its petroleum industry in recent years. The country produced approximately 30,977 barrels of oil per day in 2024 and held estimated reserves of 150 million barrels in 2025, according to Worldometer.

Against that backdrop, Niamey aims to accelerate the development of its petroleum resources and leverage Algerian expertise to transform the hydrocarbons sector into a stronger engine of economic growth.

According to Hachichi, the agreements align with Algeria’s strategy to strengthen African economic integration through the development of energy infrastructure and the expansion of intra-African cooperation and trade