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In a move that has escalated tensions between West African nations, Benin has blocked China first shipment of crude oil from Niger, citing an ongoing border dispute following a military coup in Niger that installed a junta regime. The decision by Benin authorities to prevent three vessels carrying crude oil from docking at the port has raised concerns about the stability of trade relations in the region.
According to reports from oilprice.com, the crude oil shipments, which were destined for China, were part of a $400-million commodity-backed loan agreement between Niger military junta and China National Petroleum Corp. The agreement stipulated a 7 percent interest rate and repayment in oil over a period of 12 months. However, Benin President, Patrice Talon,expressed firm opposition to allowing the oil to cross Benin territory amidst strained relations with Niger.
President Talon emphasized that Benin could not permit the loading of oil in its waters while considering Niger as an adversary. He pointed out that the decision to block exports of crude oil rom Niger was a response to Nigers refusal to allow trucks to cross the border. The blockade was initiated as part of Benin efforts to compel Niger to reopen its borders to goods and normalize relations before crude shipments could resume.
The dispute between Benin and Niger has its roots in the aftermath of a coup in Niger in July 2023, which led to strict sanctions imposed by the Economic Community of West African StatesM(ECOWAS) for over six months. While the sanctions were eventually lifted to encourage NigerMto remain within the political and economic union, tensions between the two neighboring countries persisted.
Despite the lifting of sanctions, Niger has kept its borders closed to goods from Benin withoutMproviding formal explanations, according to President Talon. This lack of communication has further exacerbated the situation, leading to a deadlock in trade relations. In response to Benin blockade of oil exports, Niger Prime Minister, Ali Mahaman Lamine Zeine, denounced the action, arguing that it violated trade agreements between the two countries and with Chinese partners.
The nearly 2,000-kilometer PetroChina-backed pipeline, inaugurated in November, connects Niger Agadem oilfield to the port of Cotonou in Benin. The pipeline was expected to facilitateMthe export of crude oil from Niger to international markets, including China. However, the currentMdispute has cast uncertainty over the future of the pipeline project and trade relations between the involved parties.
In an attempt to address the escalating tensions, Benin mines minister, Samou SeidouMAdambi, announced a provisional authorization for the loading of the first vessel in Benin waters. However, he emphasized that the authorization was subject to further discussions and examination of urgent matters related to the pipeline export operations.
Moving forward, the resolution of the border dispute and normalization of relations between Benin and Niger will be crucial for estoring stability and facilitating trade in the region. The outcome of ongoing negotiations and diplomatic efforts will determine the fate of the crude oilMshipments and the future prospects of cooperation between the neighboring nations.
