Savannah Energy PLC is a British independent energy company focused around the delivery of Projects that Matter in Africa. We are active in both hydrocarbon and renewable energy projects.
In Nigeria, Savannah has a significant controlling interest in a large-scale integrated gas production and distribution business which is capable of supplying gas to enable approximately 20% of Nigeria’s thermal power generation capacity. Savannah’s assets in Nigeria include two large-scale oil and gas fields, Uquo and Stubb Creek, and the Accugas midstream business, all of which are located in South East Nigeria. FY 2023 average gross daily production from our Nigerian operations was 23.6 Kboepd. In March 2024, we announced plans to consolidate our interest in the Stubb Creek oil and gas field, via the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, which is expected to increase Savannah’s net 2P and 2C Reserves and Resources base by 29% to a total of 204 MMboe. Following completion of the acquisition, we plan to implement an expansion programme to increase the processing capacity of the Stubb Creek facilities. It is anticipated that this will lead to Stubb Creek Field gross production increasing from 2.6 Kbopd (average for 1 January – 31 October 2024) to approximately 4.7 Kbopd. Importantly, the SIPEC Acquisition also secures significant additional feedstock gas available for sale to our Accugas subsidiary.
In Niger, we have licence interests covering 13,655 km2, approximately 50% of the country’s main petroleum basin, the Agadem Rift Basin in the southeast of the country. We are continuing to seek to progress the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger. The Niger-Benin oil export pipeline, now fully operational, provides a potential route to international markets for crude oil produced from the R1234 contract area of our subsidiary. We have sought to optimise the development plan for the R3 East Area and we now forecast a peak potential production of approximately 10,000 bopd (vs 5,000 bopd in the previous plan). Management estimates of the forecast PV10 value of the R3 East development project has also increased from US$150 million[1] to US$210 million[2].
In the renewable energy space, we are focused on new, large-scale power projects in Africa. We are involved across the entire project life-cycle, taking projects from greenfield development through to long-term ownership and operation. We currently have up to 696 MW of hydroelectric, solar, and wind projects in currently in motion across Africa and are targeting up to 2 GW+ by end 2026. This includes up to 450 MW of renewable energy projects in Niger, comprising the up to 250 MW Parc Eolien de la Tarka wind farm project, expected to be the country’s largest wind farm and potentially the largest in West Africa, and up to 200 MW of photovoltaic solar projects. We have signed agreements with two leading international Development Finance Institutions to fund approximately two-thirds of the preconstruction development costs of the Parc Eolien del la Tarka wind farm. The project is anticipated to supply up to 24% of Niger’s electricity demand, based on the country’s projected energy demand in 2026 (which is expected to grow significantly between today and 2026). Our Niger solar projects are now operating on a timeline with a sanctioning decision expected in 2025, for first power in 2027. They are expected to supply up to 12% of Niger’s electricity demand, based on 2026 energy demand projections. Our wind and photovoltaic renewable projects in development in Niger would, therefore, be capable of supplying up to 36% of Niger’s electricity demand at the commencement of project operations.
In Cameroon, Savannah is progressing the up to 95 MW Bini a Warak hybrid hydroelectric and solar project, which involves the construction of a hydroelectric dam on the River Bini in the northern Adamawa Region of the country. The project is expected to generate clean, stable, and affordable power, increasing the northern region’s generation capacity by over 50%. Project sanction is currently anticipated in 2026, with first power targeted in the 2028 to 2029 window. Savannah also owns a 41.06%[3},[4] financial interest in the Cameroon Oil Transportation Company (“COTCo”).
[1] Niger Competent Persons Report (2021) compiled by CGG Services (UK) Limited.
[2] Management estimate as at 31 December 2024 based on R3 East development with peak production of 10,000 bopd vs. 5,000 bopd in the Niger Competent Persons Report (2021) compiled by CGG Services (UK) Limited.
[3] Savannah's wholly owned subsidiary, Savannah Midstream Investment Limited (“SMIL”), has signed a Share Purchase Agreement with the national oil company of Cameroon, Société Nationale Des Hydrocarbures (“SNH”) for the sale of 10% of the issued share capital in COTCo. Completion of the transfer of the shares from SMIL to SNH will result in SMIL's shareholding in COTCo reducing from 41.06% to 31.06%. Completion shall occur upon satisfaction of certain conditions precedent related to amendments to the Articles of Association of COTCo.
[4] During the second half of 2023, in an attempt to take control of and deprive SMIL of its equity ownership, governance and operational rights in COTCo, the Republic of Chad, SHT Overseas Petroleum (Cameroon) Limited (“SHT”), COTCo and certain other shareholders of COTCo have undertaken a number of actions in breach of the Articles of Association of COTCo, the Services Agreement between COTCo and SMIL and Cameroonian law. SMIL has commenced arbitral and other legal proceedings against COTCo, the Republic of Chad, SHT Overseas Petroleum (Cameroon) Limited and the other shareholders of COTCo to seek full compensation for the loss that it has and may suffer as a result of actions in breach of SMIL’s rights under the Articles of Association of COTCo and the Services Agreement.
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