Niger oil shipment heads to France after Benin opens terminal

A million barrels of oil from Niger is headed to France after China stepped in to resolve a regional dispute over its export.

The first shipment of a deal with China National Petroleum Corp. had been delayed after a week-long impasse over border closings between landlocked Niger and its coastal West African neighbor, Benin. Niger will use part of the shipment to repay a $400 million loan from CNPC.

The Suezmax tanker Front Cascade loaded at the terminal offshore Cotonou and left over the weekend, ship-tracking data show. The maiden cargo is headed for Lavera, near Marseille, according to shipping information seen by Bloomberg. 

Niger ships oil to an export terminal in Benin via a 1,200-mile (1,930-kilometer) pipeline to the Agadem Complex operated by CNPC. The conduit — part of a multi-billion dollar investment by China in Niger’s oil industry — is expected to ship 110,000 barrels a day once it’s fully operational.

Niger’s Meleck crude oil is a medium-heavy sweet grade, similar to Angola’s Dalia oil, according to an online presentation from CNPC. At its full operating capacity, the pipeline could ship enough to fill three Suezmax tankers a month. 

CNPC holds a 57% interest in the production. The Niger government has a 25% stake and a unit of Taiwan’s CPC holds about 18%.