The first barrels of Nigerien oil left the Sèmè-Podji platform in Benin on Sunday May 19, 2024. This loading comes just a few days after authorization “punctual and provisional” of the boarding of the first boat by the Beninese authorities.
For this inaugural shipment, 1,000,000 barrels of oil were exported from the Beninese coast. The ship departed around 1 a.m. this Sunday.
Loading started 72 hours earlier. The operation was carried out by the West African Oil Pipeline Company (Wapco) maritime team.
On this first load of one million barrels destined for China, Benin will therefore pocket 500,000 US dollars with regard to the bilateral agreement relating to the construction and operation of the pipeline signed with Niger. This text sets the transit duty at $0.50 per barrel during the first ten years of operation of the cross-border infrastructure.
Indeed, “in consideration of the rights and authorizations granted to the Transport System, the collection of transit rights will be carried out by the customs revenue in charge of hydrocarbons.
The Parties agree that, for crude oil transported by the Transportation System, the unit rate of transit duty will be half US dollar (US$0.50) per barrel during the first ten (10) years of the period of ‘exploitation’.
Thus, “subject to the provisions that will be agreed in the AGH, from the eleventh (11th) year of operation, this unit rate of the transit duty will be revalued by 0.25 US dollars every five (5) years over the price of the barrel transported for the twenty (20) years to follow. This revaluation will take place without however jeopardizing the project. The ceiling will be 1.5 US dollars per barrel.
In addition to the right of transit, the Benin-Niger pipeline also provides jobs in both countries. Estimates give up to 3,000 jobs.
Cotonou had sealed the pipeline in response to the continued closure of the borders on the Niger side. The blockade was lifted after a letter from Nigerien customs addressed to Beninese customs.
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