Foreign Minister Bakary Sangaré announced the project on state-run Radio Television du Niger after the signing ceremony in Niamey, Niger's capital, on Saturday. "The estimated cost of the project is $1.9 billion," Sangaré said. "The agreement takes effect upon signature, and its total term is set at 16 years, comprising 3 years of construction and 13 years of operation."
The agreement stipulates that Zimar will construct a refinery and petrochemical facility in Dosso, a city in southwestern Niger. The facility is expected to produce 100,000 barrels daily. After the 13 years of operation, Zimar will hand the infrastructure over to the state as part of the deal.
Roughly two years have passed since the initial October 2024 signing. Sangaré said that Niger's government had requested a review and subsequent amendments to the agreement.
The project includes both a refinery and a petrochemical complex, so Niger will be able to process fuels and other products rather than only export the raw material. Zimar is responsible for the construction phase and will then operate the facility for 13 years, after which the state takes over. The $1.9 billion covers the entire development and startup period.
This arrangement is designed to reduce Niger's reliance on imported refined products and create local jobs and expertise. The transfer at the end of the term also gives the government control of the operation without additional payment.
The country has been intensifying its push to develop its oil resources. Just this week, Niger and Algeria launched a joint drilling operation at the Kafra oil block, located near Agadez and close to the Algerian border.
On Friday, assisted by Algeria's Sonatrach SpA, Niger loaded its inaugural Meleck crude oil cargo at the Sèmè oil terminal in Benin, according to the Algeria Press Service.
Authorities estimate Niger's oil reserves at around 3 billion barrels.
The refinery project is part of Niger's broader strategy to become a regional energy hub. The partnership with a Canadian firm also reflects Niger's openness to foreign investment in its oil sector.
This deal marks a significant step for Niger as it moves from being a raw exporter to a refining nation. By building local processing capacity, the country aims to capture more value from its resources and create jobs. The involvement of a foreign partner like Zimar brings technical expertise and capital, which are essential for such a large-scale infrastructure project.
The eventual transfer of ownership to the state ensures that the long-term benefits remain within Niger, aligning with the government's goal of economic self-sufficiency. As Niger continues to expand its upstream activities, including the recent joint venture with Algeria, this refinery will be a cornerstone of its energy strategy for decades to come.
The 16-year timeline also points to Niger's commitment to long-term industrial build-out. The three-year construction phase will require steady financing and infrastructure, while the 13-year operating period gives the state space to develop local skills, build downstream industries, and establish a track record as a refiner before ownership shifts. The crude export at Sèmè and the joint drilling with Algeria show that Niger is already working to connect its upstream production to a broader national energy plan.