Sonatrach Starts Kafra Drilling on Niger’s 260m-Barrel Prospect

Algeria’s state-owned energy company Sonatrach has entered a new drilling phase at Niger’s Kafra oil project, where exploration has identified more than 260 million barrels of estimated reserves.

Sonatrach subsidiary ENAFOR began drilling the Kafra Sud-Est 1 well on August 13, opening a new stage in the long-running project.

The drilling ceremony was presided over by Algerian Prime Minister Sifi Ghrieb and Nigerien Prime Minister Ali Mahaman Lamine Zeine.

The operation follows years of exploration and renewed cooperation between Algeria and Niger over the development of the oil block.

The Kafra project had largely stayed at the exploration stage despite earlier oil discoveries. Further drilling will help establish the size, quality and commercial viability of the resources.

Kafra enters drilling phase

Sonatrach obtained a prospecting permit for the Kafra block in 2005. The company later signed a production-sharing agreement with Niger, which was renewed in 2022.

Sonatrach has been involved in the project for more than a decade. Its National Well Services Enterprise said in May that preparations for operations at Kafra were at an advanced stage.

The project had been expected to enter drilling earlier this year. Business Insider Africa reported in March that Sonatrach was preparing to begin work, with operations expected to start in April.

The start of drilling in August now gives the project a clearer path from exploration towards possible production. However, the estimated 260 million barrels have not yet been established as commercially recoverable reserves.

Niger is seeking to expand its oil industry and gain more income from its hydrocarbon resources. The country already exports crude through the Niger-Benin pipeline, which began operating in 2024.

The pipeline gave Niger, a landlocked country, access to international oil markets. Developing additional oil fields could raise production and create another source of export income.

Algeria builds energy ties

Kafra also gives Algeria another project through which it can work with Niger on energy development. Sonatrach's involvement has continued as Niger seeks investment and technical cooperation in its petroleum sector.

The two countries are also working on the proposed Trans-Saharan Gas Pipeline. The roughly 4,100-kilometre project is designed to carry Nigerian gas through Niger and Algeria towards European markets.

Kafra and the proposed gas pipeline have therefore become two major areas of energy cooperation between the countries. Algeria is seeking a larger place in the regional energy network, while Niger is developing its oil sector.

Niger has also sought new economic and technical partnerships after its relationship with France deteriorated and it left the Economic Community of West African States.

The Kafra project is significant for Niger because of the country's large but still developing hydrocarbon base. Although Niger is widely known for uranium, crude oil has become an important part of its economy.

The immediate task at Kafra is now the drilling programme. Results from the wells will help determine the size and quality of the oil resources and whether they can support commercial production.

The drilling at Kafra Sud-Est 1 is the first major test of the project's estimated 260 million-barrel potential since the latest phase of cooperation began.