• Niger has declined to extend Savannah Energy’s exploration permits in the Agadem basin.
• The decision concerns four oil blocks covering more than 13,000 km².
• The government cited unmet contractual obligations under the production-sharing contract.

Niger’s government has refused to extend the oil exploration permits held by Savannah Energy in the Agadem basin, the country’s main oil-producing region where most exploration and production activities are concentrated.

The decision was announced after the Council of Ministers meeting held on March 3. It concerns exploration blocks R1, R2, R3, and R4 held by the British company under the R1234 production-sharing contract, which covers more than 13,000 km².

The measure follows a request submitted by Savannah Energy Niger, the company’s local subsidiary, to the Nigerien Ministry of Petroleum. The request was linked to a 10-year extension of exploration rights granted in December 2021.

At that time, the “Exclusive Exploration Authorization” issued by Nigerien authorities provided for an initial exploration period of four years, along with two possible two-year extensions. One of these three periods could also be extended by an additional two years.

After reviewing the request at the end of the initial exploration period, authorities concluded that certain obligations under the production-sharing contract had not been fulfilled by Savannah Energy Niger.

Officials cited shortcomings, “in several respects,” without providing further details, related to contractual and regulatory obligations tied to the minimum work program associated with the exploration permits.

What happens to the blocks next?

When an exploration permit is not extended, operators generally lose their rights over the block. In such cases, the licenses revert to the state, which may decide to reassign them to other companies through a new bidding process.

Similar situations have occurred in several African oil-producing countries. In Nigeria, the federal government announced in April 2021 that it had revoked four oil licenses held by Addax Petroleum due to the company’s failure to develop the fields. Authorities said the firm had not met its contractual obligations, according to Reuters.

In Ghana, a dispute also arose between the government and British company Tullow Oil over tax obligations related to its oil operations. The case was brought before the International Chamber of Commerce. In January 2025, the arbitration tribunal ruled in favor of Tullow Oil, exempting the company from paying $320 million in taxes, Reuters reported.

Other cases have led to international arbitration. In Nigeria, Interocean Oil Development Company challenged measures taken by the government concerning rights over oil permits before the International Centre for Settlement of Investment Disputes in a dispute related to oil exploitation.

Savannah Energy has not yet commented on the Nigerien government’s decision. The company is also involved in the development of two photovoltaic solar power plants with a combined maximum capacity of 200 MW. The agreement with the Nigerien government was signed in May 2023.

Abdel-Latif Boureima