Niger Declines to Renew Savannah Energy Permits in Agadem Basin

Niger has declined to renew oil exploration permits held by Savannah Energy in the Agadem basin, the country’s main oil-producing region. Most of Niger’s exploration and production activity takes place in this area.

The Council of Ministers confirmed the decision during a meeting on March 3. It affects exploration blocks R1, R2, R3 and R4 operated by the British company. These blocks fall under the R1234 production-sharing contract covering more than 13,000 km².

Extension Request and Contract Obligations

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

Under that arrangement, Nigerien authorities issued an Exclusive Exploration Authorization. The authorization provided an initial exploration phase of four years. It also allowed two possible extensions of two years each. One of these periods could be prolonged by an additional two years.

After reviewing the request, officials concluded that Savannah Energy Niger had not fulfilled several commitments under the production-sharing contract. Officials cited shortcomings “in several respects.” These related to contractual obligations tied to the minimum work program. They did not provide further details.

What Happens to the Blocks Next?

When exploration permits are not renewed, operators usually lose their rights to the blocks. The licenses then revert to the state. Authorities can reassign them through a new licensing round or through direct negotiations.

Other African oil producers have faced similar disputes over license obligations. In Nigeria, the federal government revoked four oil licenses held by Addax Petroleum in April 2021. Authorities said the company had failed to develop the fields, according to Reuters.

In Ghana, a dispute also emerged between the government and the British company Tullow Oil. The disagreement concerned tax obligations linked to oil operations. The government brought the case before the International Chamber of Commerce. In January 2025, the arbitration tribunal ruled in favor of Tullow Oil. The ruling exempted the company from paying $320 million in taxes, Reuters reported.

Other disagreements have also reached international arbitration forums. In Nigeria, Interocean Oil Development Company challenged government measures affecting its rights over oil permits. The dispute was brought before the International Centre for Settlement of Investment Disputes.

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