By JKNewsMedia
GROWTH IN Nigeria’s oil and gas sector is evident as Savannah Energy PLC reports notable improvements in its 2024 operations.
The British energy company announced a rise in total income to $393.6 million, describing it as a significant leap from 2023’s $289.8 million.
Cash collections also saw a boost, reaching $248.5 million compared to $206 million the previous year, underlining the company’s strengthened position in Africa’s energy markets.
Savannah’s Nigeria says its operations remained central to its performance, with an average gross production of 23.1 Kboepd, slightly lower than 2023’s 23.6 Kboepd but maintaining gas output at 88% of total production.
The company, through its midstream subsidiary, Accugas Limited, reported advancements in its $45 million Uquo Central Processing Facility compression project, crucial for expanding gas production.
Notably, the company stated that it exceeded its revenue target of $245 million for the year.
Also, operational expenses and administrative costs are expected to remain within the $75 million guidance, while capital expenditure came in below the anticipated $50 million due to phased spending.
Savannah’s ongoing acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited is also expected to bolster its portfolio.
A release issued states that Sinopec holds a 49% non-operated interest in the Stubb Creek field.
The transaction, slated for completion in Q1 2025, will trigger an expansion plan to raise production from 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
Looking ahead, Savannah plans to drill two wells in Nigeria’s Uquo Field in 2025, with one expected to add 80 MMscfpd of supplemental gas production.
Additionally, an exploration well targeting an unrisked 154 Bscf of gas reserves is in preparation.
Moreover, the company said it aims to advance its R3 East oil development project in Niger, holding 35 MMstb of gross 2C resources.
Meanwhile, it continues exploring an alternative transaction structure for acquiring stakes in oil and gas assets in South Sudan.
On the renewable energy front, Savannah announces it is scaling up efforts with 696 MW of projects underway, including the 250 MW Parc Eolien de la Tarka wind farm in Niger and the 95 MW Bini a Warak hybrid hydro-solar project in Cameroon.
And by 2026, Savannah targets over 2 GW of renewable power projects, affirming its commitment to Africa’s energy transition.
Andrew Knott, CEO of Savannah Energy, highlighted the company’s diverse growth strategy, saying: “2024 marked the highest level of cash collections in our Nigerian business.
“As we progress with acquisitions, drilling campaigns, and renewable energy initiatives, 2025 promises to be an exciting year across all sectors of our operations.”
