Savannah Energy PLC, a British independent energy company dedicated to delivering “Projects that Matter,” has provided a detailed update on its operational performance, future outlook, and strategic plans for FY25, focusing on its portfolios in Nigeria and Niger.
Operational Update and Financial Highlights
Savannah Energy reported an average gross production in Nigeria of 22.7 kboe/d (88% gas), consistent with the previous year, while achieving a Total Income of $320 million and an Adjusted EBITDA of $257 million in the 10 months to October 2024. This represents a significant increase compared to $233 million and $202 million, respectively, reported in H1 FY24.
The company’s midstream subsidiary, Accugas Limited, has drawn NGN279 billion from its NGN340 billion transitional debt facility, which is being utilized to pay down its USD-denominated facility. Management is working to fully convert the remaining $225 million balance to Naira, aligning the debt facility with the revenue currency. Plans are also underway for a potential long-term domestic bond issuance to replace the transitional facility.
Nigeria Operations
Expansion and Development Projects
Savannah’s $45 million Uquo Central Processing Facility (Uquo CPF) compression project in Nigeria remains on track for construction completion by year-end, with commissioning slated for Q1 2025. This project will facilitate medium-term expansion of gas production, although FY25 gas volumes are expected to remain stable year-on-year. Plans for H2 FY25 include drilling an additional Uquo development well and an exploration well, with the latter targeting an estimated 154 Bscf of prospective gas resources.
Additionally, Savannah is set to finalize its $61.5 million acquisition to increase its ownership of the Stubb Creek asset to 100%, with regulatory approvals expected in early 2025. To fund this acquisition, the company has secured a $60 million Reserve-Based Lending (RBL) facility from The Standard Bank of South Africa and Stanbic IBTC Bank.
Gas Contracts and Regulatory Compliance
Three gas supply contracts were extended or signed in 2024, covering up to 105 MMscfpd. These include:
- A 12-month extension with First Independent Power Limited (FIPL) to supply up to 65 MMscfpd.
- A new 24-month agreement with Ibom Power Company Limited for up to 30 MMscfpd.
- A 12-month extension with Central Horizon Gas Company Limited (CHGC) for up to 10 MMscfpd.
The Uquo and Stubb Creek oil fields have been converted to new 20-year Petroleum Mining Leases, effective December 1, 2023, in line with Nigeria’s Petroleum Industry Act of 2021.
Niger Operations
In Niger, Savannah continues to optimize the development of its R3 East oil asset, which holds 35 MMstb of Gross 2C Resources. Peak production potential has been revised upward to 10,000 bopd from the earlier estimate of 5,000 bopd, and the project’s forecast PV10 value has increased from $150 million to $210 million. The operational Niger-Benin oil export pipeline also presents new opportunities for international market access.
Renewable Energy Division
Savannah is targeting the development of over 2 GW of renewable energy projects by the end of FY26, with 696 MW currently in progress. Notable projects include:
- Parc Eolien de la Tarka Wind Farm, Niger: Expected to produce up to 250 MW, representing 24% of Niger’s projected electricity demand by 2026. The project is anticipated to avoid 450,000 tonnes of CO2 emissions annually and create over 500 jobs during construction.
- Bini a Warak Hybrid Project, Cameroon: A redesigned hydroelectric and solar project with an increased capacity of up to 95 MW, targeting first power between 2028 and 2029.
- Solar Projects, Niger: Preliminary plans for two photovoltaic plants near Maradi and Zinder, with a combined capacity of up to 200 MW, aim to supply 12% of Niger’s electricity demand by 2026.
CEO’s Vision
Andrew Knott, CEO of Savannah Energy, stated:
“2025 promises to be an exciting year for Savannah as we advance multiple initiatives across hydrocarbons and renewable energy. We are committed to strong operational performance in the short and long term, embracing opportunities in both the hydrocarbon and renewable energy sectors.”
Key Update Highlights
- Gross Production: Average 22.7 kboe/d for 10M 2024, steady from 2023 levels.
- Uquo CPF Project: $45 million compression project on track for Q1 2025 commissioning.
- Renewables Pipeline: Targeting over 2 GW by FY26, with flagship projects in Niger and Cameroon.
- SIPEC Acquisition: Progressing to consolidate Savannah’s ownership of the Stubb Creek asset.
- Financial Growth: Total Income for 10M 2024 reached $320.3 million, up from $231.0 million in 2023.
Savannah Energy’s continued diversification across oil, gas, and renewable energy reflects its commitment to delivering sustainable and impactful energy solutions in Africa.
Note: Original Content Paraphrased by AI.
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