Savannah Energy Plc has shared an update on its oil and gas activities in Nigeria, showcasing steady progress in developing gas infrastructure to support its medium-term production goals.
The company’s subsidiary, Accugas Limited, has accessed ₦279 billion from a ₦340 billion transitional debt facility, using the funds to repay its dollar-denominated debts. The remaining $225 million debt will be converted to Naira, aligning the facility with the currency in which gas revenues are earned. Savannah is also considering issuing a long-term domestic bond to replace this transitional debt.
Construction of Savannah’s $45 million Uquo Central Processing Facility (CPF) compression project is on schedule and expected to finish by the end of 2024. Commissioning is planned for the first quarter of 2025, enabling expanded gas production. The company also plans to drill a new Uquo development and exploration well in the second half of 2025.
Additionally, Savannah’s transaction to acquire full ownership of the Stubb Creek asset for $61.5 million is set to close in early 2025.
The company reported steady production in Nigeria, averaging 22,700 barrels of oil equivalent per day, with 88% of this being gas. Between January and October 2024, Savannah generated $320 million in revenue, an increase compared to $233 million in the first half of the year.
Savannah’s CEO, Andrew Knott, expressed confidence in the company’s progress, saying, “2025 will be an exciting year, with plans to enhance our oil and gas production capacity significantly.”
The developments underline Savannah Energy’s commitment to strengthening Nigeria’s energy sector through investments in infrastructure and production capacity.
