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Tag: Nipco

  • NIPCO acquires major stake in British Savannah Energy

    NIPCO acquires major stake in British Savannah Energy

    • Revenue hits $185.2m in 9 months

    NIPCO Plc has acquired 19.4 per cent major equity stake in British independent energy company, Savannah Energy Plc.

    Savannah Energy at the weekend indicated that NIPCO has emerged as a new major Nigerian investor, with approximately 19.4 per cent of the company following completion of primary investment and certain secondary share transactions.

    The funding from NIPCO would be used to advance certain business development opportunities currently under consideration.

    This was part of the highlights of the company’s third-quarter report released at the weekend. The nine-month report for the period ended September 30, 2025 showed continued growth trajectory, with appreciable increase in its total revenues and cash collections.

    The update released at the weekend showed that its total revenues during the period was $185.2 million, up nine per cent compared to $169.3 million in the first nine months in 2024.

    The company’s cash collections also rose by five per cent to $241.6 million compared to $229.3 million in the corresponding period in 2024. It also reported cash balances of $101.8 million, which as of 31 December 2024 stood at US$32.6 million.

    Likewise, net debt and trade receivables balance continue to see improvements, reducing by one per cent and nine per cent, respectively to 30 September 2025 since year 2024. The company’s net debt as of 30 September 2025 stood at $629.9 million

    It was $636.9 million by 31 December 2024), with gross debt at $731.7 million, of which only $41.4 million (6%) was recourse to Plc. Its trade receivables balance as of 30 September 2025 was $493.3 million, a nine per cent improvement on year-end 2024 of $538.9 million.

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    According to the update, agreements have also been signed with a consortium of five Nigerian banks in respect of an increase in the Accugas debt facility from N340 billion (approximately $222 million) to up to approximately N772 billion (about $500 million).

    It is expected that the transitional facility will be utilised to enable the remaining outstanding balance of the Accugas US$ Facility to be repaid by end 2025. This is in addition to the term sheet agreed between Savannah’s wholly owned subsidiary, Savannah Energy EA, and a major African based financial institution.

    The term sheet is for a new $37.4 million debt facility to provide funding for Savannah’s planned acquisition of a 50.1 per cent interest in Klinchenberg BV, which holds indirect interests in three East African hydropower projects.

    As part of its financial drive, Savannah announced its intention to complete a fundraising by way of subscription of 161,061,510 new ordinary shares at 7 pence per new ordinary share to raise approximately £11.3 million before expenses.

    The completion of the final tranche of the March 2025 fundraising of 138,977,614 new ordinary shares at 7 pence per new ordinary share is expected imminently, with the final approximate £9.7 million in subscription funds to be received.

    A key highlight of the update is the announcement of the planned introduction of a new strategic shareholder, NIPCO, a diversified Nigerian energy conglomerate, onto the company’s register.

    The new investor intends to acquire, for £7.9 million, 113,378,685 ordinary shares issued as part of the company’s March 2025 fundraising and expects to acquire a further £9.5 million, 135,674,944 ordinary shares through a series of secondary market trades.

    This represents a total investment of approximately £28.7 million in the company and an expected pro forma holding of around 19.4 pert cent of the company’s enlarged share capital (as enlarged by the various proposed share issues referred to in the announcement).

    Savannah also announced the intended sale of ordinary shares by the company’s employee benefit trust and issue of new ordinary shares to the EBT.

    Operationally, Savannah’s gross production in Nigeria averaged 20.1 Kboepd (9M 2024: 23.0 Kboepd), of which 85 per cent was gas (9M 2024: 88%). At Stubb Creek, the 18-month expansion programme has increased production to 3.3kbopd, 24 per cent above the 2024 average.

    Well site construction is currently on-going for the Uquo NE development well, following the earlier signing of a turnkey drilling contract for a planned two-well drilling campaign on the Uquo Field, scheduled to commence in January 2026, with first gas targeted by the end of that quarter.

    In Niger, Savannah is also considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area 2026/27, subject to a satisfactory agreement being reached with the country’s government.

    The update also showed that Savannah’s new compression system at the Uquo Central Processing Facility has been completed and fully commissioned.

    This project, which was delivered safely and approximately 10 per cent under the original $45 million budget, is expected to allow Savannah to maximise the production from its existing and future gas wells.

    Savannah also announced that it has agreed a gas contract extension with the Central Horizon Gas Company Limited to end December 2026 for up to 10 MMscfpd.

    Savannah said it also progressing on its previously announced proposed acquisition of indirect interests in three East African hydropower projects, including the 255 MW Bujagali power plant, with a 13-year operating and payment track record, and two advanced-stage development projects, marking its planned entry into five new countries, namely: Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda.

    The company continues to progress on its existing priority Power Division projects, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.

    It is also actively reviewing opportunities in both the thermal and renewable power sector, with the expectation of announcing transaction(s) currently under consideration over the course of the next 24 months in the African power space.

    CEO of Savannah Energy, Andrew Knott, said: “2025 has been a year of strong progress against the nine focus areas we set out at the beginning of the year. These include increasing our rate of cash collections in Nigeria, with performance remaining on track; advancing the refinancing of our principal Nigerian debt facilities, which we expect to complete by year-end; and successfully completing the acquisition of 100 per cent of Sinopec International Petroleum Exploration and Production Company Nigeria Limited in March.

    “We have also commenced the Stubb Creek expansion project, continued to advance our arbitral processes, and begun site construction ahead of the planned drilling of our Uquo development and exploration wells.

     “In Niger, discussions on the R3 East development are progressing, while in the power sector we have refined our business model to align with future growth opportunities.

     “Finally, we continue to pursue further value-accretive acquisitions across both the oil and gas and power sectors, with the Norfund transaction already announced and several other opportunities under active discussion.

     “Additionally, earlier in the year, the company reported a 21 per cent 2P Reserves upgrade on its Uquo gas field and a 29 per cent upgrade on its Stubb Creek oil field 2P Reserves. Collectively, these developments demonstrate the strong operational momentum within the Group and our continued focus on disciplined execution across all parts of the business.”

    With regards the emergence of NIPCO as new Nigerian investor, Knott said: “We are also pleased to welcome NIPCO Plc, a diversified Nigerian energy conglomerate, as a potential new investor in the company, who we expect to own approximately 19.4 per cent of the company following completion of their primary investment and certain secondary share transactions.

    The CEO said proceeds of the new investor’s primary investment are expected to enable, among other things, the advancement of certain business development opportunities currently under consideration.

    He stated that coupled with the imminent completion of the primary investment he committed to in March 2025, a series of secondary transactions, which are expected to occur, are anticipated to increase his shareholding in the company to approximately 12.6 per cent, demonstrating his continued strong faith in the company’s future potential.

    Knott further said: “In addition, we are pleased to announce that should we see a significant improvement in cash collections- and/or receive meaningful proceeds from the arbitral processes we are engaged in, it is the Board’s present intention to consider returning a portion of such funds to shareholders through a tender offer or share buy-back, subject to prevailing capital requirements and shareholder and regulatory approvals.

     “In this vein, today we are also announcing the signature of a conditional off-market share buyback agreement for approximately 6.8 per cent of the company’s enlarged share capital, to acquire shares prior to 31 March 2026. We are also announcing the proposed cancellation of warrants over approximately 101 million shares.

    He thanked all those who contributed to the company’s successes this year. “My incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners, thank you all,” Knott said.

  • Nipco: The RRN angle

    Nipco: The RRN angle

    After some back and forth, he blurted out: “all I need is the RRN. With that I can reprint the receipt from my machine and sort this issue out”. RRN is not Greek; it is the Retrieval Reference Number normally found on the receipt of every POS transaction. But many of us do not pay attention to it until there is trouble. I learnt the hard way too.

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    Upon enquiry, he said I could get the RRN from my bank and I did. Despite that, Nipco and its official who asked for the RRN are still playing games with me on refunding the N20000 debited from my account for a failed transaction at their Arepo, Ogun State retail outlet since January 15.

    The battle has just started, and God willing, there will be more on the RRN angle the next time out.

  • #NogreeforNipco

    #NogreeforNipco

    The messages have been coming in, in torrents. Almost all the writers have something to say about gas filling stations. They said all the outlets are crooks. According to them, the outlets are not different from their workers whose stock-in-trade is to rip off motorists and other customers. I have also experienced some of the things they wrote about. But my last experience which has provoked two pieces in this space beats them all.

    To me, it is daylight robbery by a well-heeled oil firm which also runs a retail outlet. Nipco is deliberately refusing to refund my N20000 for a failed transaction last January 15 at its Arepo outlet off the Lagos-Ibadan Express road. The money is not the issue but the outlet’s advertent refusal to make amends. Those who wrote in, in solidarity with this column said they had similar experiences with some outlets (names withheld) as well as Nipco.

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    They said the outlets do not give a hoot about customers’ complaints. For all they care, customers can go to hell. ‘I see wen for dem hand. I go buy petrol for one filling station around Ogba with my ATM. Dem debit me but the receipt say: ‘DECLINED’. Dem no sell fuel for me. My bank say the money don leave dem hand. I go back to the filling station, dem no answer me. Na the thing wey we dey see for dem hand be that. Oga, no gree for dem o”.

    None has a good story to tell about the outlets. This is worrisome. Should they be allowed to continue to treat customers shabbily, especially in cases of ‘dispense error’ – where a customer is debited for a failed transaction, but the outlet is credited. In my case, if Nipco wants to claim, contrary to available evidence, that it did not get the money, then it should throw its books open for scrutiny. From there, we will take the matter further.

  • Nipco: Laying the facts bare

    Nipco: Laying the facts bare

    There is a certain Latin word which lawyers like to use when they have a good case. When the facts are not in doubt and the defendant has nothing to dispute the plaintiff’s case, the lawyer will boldly tell the court: “My Lord, res ipsa loquitur, that is the thing speaks for itself”. What the lawyer is saying in effect is that from the processes before the court, the facts of the case are clear and unambiguous and that there is no need for further arguments. I do not have much to say today on my case with Nipco filling station at Arepo, in Ogun State, over the ‘N20000 dispense error’ that I wrote about last week.

    I do not have anything against the outlet. All I want is for it to go through its books and sort out this matter. I cannot pay N40000 for N20000 worth of petrol and pretend, like the station, that everything is alright. Is my claim true or false? Here are some of my facts as obtained from my bank:

    Read Also: NIPCO eyes long-term growth on strategic investments

    Dear Mr. Lawal,

    Thank you for contacting Guaranty Trust Bank. We apologize for the inconveniences caused. Please be informed that your dispense error claim of N20,000 on the 15/01/25 was declined by the acquiring bank. Please note, transaction declined means that the Merchant got value for that transaction, hence their bank declined or refused to reverse or refund us. Kindly contact merchant for refund if you did not get value for the transaction. Find attached the receipt of the transaction. Thank you for choosing Guaranty Trust Bank.

    • Chinwendu Etolihu
  • CNG investors express concerns over ‘monopoly’

    CNG investors express concerns over ‘monopoly’

    Some marketers have expressed concerns  over  what they  described as  unbridled rights being ceded to a firm, NIPCO by the government.

    They said  that the development  may lead to monopoly.

    Their concerns followed the explosion  at NIPCO CNG gas station in Benin City  a couple of days ago

    They expressed doubts about the competence of NIPCO to solely handle the enormous task being laid in its hands as dispensers of CNG and converter of PMS powered vehicles to CNG.

    A major CNG conversion centre owner in Ibadan, Oyo State, Atolagbe Adeyemo, noted that  Federal Government’s efforts  to bequeath a soft landing for Nigerians in the wake of lingering financial impediments, may be eroded by the preference for NIPCO .

    Adeyemo said preference is being given NIPCO by some  people  so it can dominate the CNG business and then cripple other competitors.

    Government moved in to harp on the usage of CNG as a cheaper and more environmental-friendly means of transportation, as truce to the effects of hike in pump price, occasioned by the removal of fuel subsidy at the twilight of present administration.

    Read Also: Tinubu meets NIPCO executives, commends investments in CNG sector

    Other pundits in the energy sector have also raised eyebrows over the seemingly unbridled rights being ceded to NIPCO at the gas sector, with opinion that such could lead to “unwarranted monopoly” that may create another lacuna in the government’s intention to alleviate poverty through the CNG initiative.

    Clement Craig, an energy expert and ex-official  of ExxonMobil, notified with fear that giving preference to NIPCO Plc by government may spell undue dominance of the CNG initiative and culminate into a monopoly, such that is presently affecting the Nigeria oil sector.

    The recent explosion at NIPCO refilling station, Benin, has caused a lull in patronage to CNG conversions in no small measure, as morales were dampened, particularly around Benin City, many of who were stone-stunned at the sight of the inferno that erupted, ostensibly as a result of laxities on the part of station management.

    Another expert in the sector who spoke on condition of anonymity, said government ought to limit the grant of NIPCO to managing gas station alone. He  described the concession right given to the Indian company on conversion as unjustifiable.

    NIPCO Plc has been enjoying unfettered relationship with the Federal Government  since March 2007, when it made presentation of its CNG project to the Inter-ministerial team of government.

  • Tinubu meets NIPCO executives, commends investments in CNG sector

    Tinubu meets NIPCO executives, commends investments in CNG sector

    President Bola Tinubu has praised NIPCO’s significant investments in Nigeria’s Compressed Natural Gas (CNG) sector during a meeting with the company’s executives at the State House in Abuja. 

    This was contained in a statement on Tuesday by Special Adviser to the President on Information and Strategy, Bayo Onanuga. 

    NIPCO has been a key player in Nigeria’s energy sector for over four decades.

    The President commended NIPCO’s contributions to the nation’s energy transition efforts, particularly its support for the Presidential Compressed Natural Gas Initiative (PCNGI).

    During the meeting, Tinubu acknowledged NIPCO’s role as a critical player in enhancing the adoption of CNG as an alternative fuel, noting that such investments align with his administration’s energy security and economic diversification strategy.

    He emphasised the importance of public-private partnerships in driving the transition to cleaner and more affordable energy solutions for Nigerians.

    The President lauded NIPCO’s efforts in promoting and supporting the “Switch to CNG” campaign, which has been instrumental in boosting public awareness and providing affordable CNG conversion kits even before the official kickoff of the Presidential CNG Initiative.

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    He highlighted the significance of this initiative in reducing the nation’s reliance on petrol and cutting down fuel costs for consumers.

    CNG, being a cleaner and more affordable fuel, reduces the carbon footprint and saves consumers significant fuel costs.

    “Nigeria’s motorists can buy petrol at N1,000 per litre or equivalent gas per Standard Cubic Meter at N200. We have also introduced incentives for commercial motorists to convert from petrol to gas free of cost,” President Tinubu said.

    President Tinubu reaffirmed his administration’s commitment to providing a conducive environment for private sector investments and expanding Nigeria’s CNG infrastructure to enhance energy efficiency and economic growth.

    He further encouraged NIPCO to continue its innovative approach to CNG expansion while supporting the government’s broader goals in the energy sector.

    Mr Ramesh Kasangra, NIPCO director, who led the delegation, thanked President Tinubu for his steadfast support of the CNG sector.

    He expressed NIPCO’s commitment to furthering the partnership with the government to ensure Nigeria’s energy transition remains on track.

    He assured the President that the company was ready to invest in infrastructure to make CNG more accessible nationwide.

    According to him, NIPCO has been a key player in various sectors of Nigeria for over four decades and will continue to believe in Nigeria for the long term.

  • NIPCO eyes long-term growth on strategic investments

    NIPCO eyes long-term growth on strategic investments

    NIPCO Plc’s strategic investments would provide a strong pathway for the downstream oil and gas company to sustain a stable long-term growth over the years.

    Its Chairman, Chief Bestman Anekwe, at the company’s annual general meeting in Abuja, said the company recorded 69 per cent increase in turnover in the fiscal year 2023 compared to the previous year despite facing product and foreign exchange challenges

    He expressed optimism about NIPCO’s future, noting that 69 per cent increase in turnover for 2023 is a good pointer to better performance in 2024. 

    “Our strategic investments are poised to create new pathways for long-term growth,” Anekwe said.

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    He emphasised the potential of the oil and gas sector to drive economic progress amid the country’s ongoing efforts to curb pipeline vandalism and oil theft.

    According to him, NIPCO’s collaboration with NNPC Limited to establish 35 CNG stations across Nigeria, catering to over 200,000 vehicles daily, is a remarkable endeavour which will be pursued vigorously

    However, he acknowledged the initiative’s challenges, including significant capital investment and infrastructure deficits.

    He noted that the outlook for 2024 is mixed, with expectations of increased drilling, local petroleum product refining, gas commercialisation, and the completion of the Ajaokuta-Kaduna-Kano Gas Pipeline project.

    “These developments are poised to jump-start Nigeria’s economic engine,” Anekwe said, while also highlighting the ongoing security challenges facing the oil and gas industry.

    He further acknowledged the challenges of product availability and foreign exchange but expressed confidence in the company’s ability to navigate these obstacles.

    Anekwe, who was represented at the meeting by Alhaji Aminu Abdulkadir , Group Executive Director, Corporate Services, NIPCO, said the group’s good balance sheet, exemplary service delivery, and dedicated workforce have positioned it for continued success.

    He commended the management team of NIPCO for its resilience and innovation, adding that  “NIPCO Group is in good hands”.

  • NIPCO Gas seeks increased adoption of auto CNG

    NIPCO Gas seeks increased adoption of auto CNG

    NIPCO Gas has advocated the adoption of Auto Compressed Natural  Gas  for more friendly and sustainable eco-system.

    Its Managing Director, Nagendra Verma, made the suggestion while receiving the Most Innovative Gas Company of the Year Award  conferred on NIPCO by an online publication, Energy Times.

    Verma expressed his company’s determination to drive positive transformation in the energy industry.

    He said the company had invested substantial human and material resources in developing infrastructure that bolster viable energy alternatives for both motorists and industrial applications.

    He added: ”A prime illustration of our company’s dedication is the recent partnership between NNPC Limited and NIPCO Gas Limited, which aims to establish CNG stations nationwide. This significant venture will enhance Nigeria’s CNG framework, broaden CNG availability, and foster the transition to a more affordable and eco-friendly fuel alternative for various vehicles.

    “The initiative, introduced by NNPC Limited’s Group Chief Executive Officer, Mallam Mele Kyari, is set to offer diverse fuel choices to Nigerians in the wake of the Premium Motor Spirit (PMS) subsidy removal. The goal is to create a network of CNG stations throughout the country. Under the partnership NIPCO Gas has committed construction of 35 CNG Stations initially across states of Nigeria.

    “At present, NIPCO Gas Limited has 16 CNG outlets and has successfully converted over 8,000 vehicles to CNG. The firm’s expertise and experience are instrumental in supporting the government’s renewed efforts to making fuel more economical and to enhance its beneficial impact on the national economy”.

    Read Also: Four CNG stations ready in Lagos, says NIPCO

    Speaking on the award, he said it acknowledged thecompany’s endeavours in the gas sector, marked by the launch of our inaugural Compressed Natural Gas (CNG) station in Benin City, Edo State in 2009.

    He described the award  as a recognition of the firm’s commitment to deepen gas utilisation as an alternative automotive fuel.

    Verma said: “The distinguished award also underscores NIPCO Gas’s firm unwavering focus to expanding the country’s gas infrastructure. We are honored to have our efforts in the sector as acknowledged in a significant way as you have done.

    “Receiving this award motivates us to further contribute to the industry’s expansion in every aspect. Our commitment to the nation’s progress, particularly in the gas segment of the hydrocarbon industry, remains steadfast.

    “This accolade is a tribute to the dedication of my colleagues at NIPCO Gas Limited, whose relentless pursuit of excellence has significantly shaped our company’s impressive growth over time”.

  • Four CNG stations ready in Lagos, says NIPCO

    Four CNG stations ready in Lagos, says NIPCO

    The Managing Director of NIPCO Gas Limited, Mr. Nagendra Verma, has said the company had completed four Compressed Natural Gas (CNG) stations in Lagos.

    He said the stations would be inaugurated next month.

    Addressing reporters yesterday in Lagos, Verma highlighted the significance of CNG as a viable alternative fuel.

    The NIPCO boss lauded the Federal Government’s initiative in promoting gas as an alternative fuel.

    He affirmed the company’s commitment to supporting the initiative, emphasising its extensive involvement in AutoCNG development since 2009.

    Verma also spoke on the company’s partnership with the Nigerian National Petroleum Company Limited (NNPCL) to build 35 AutoCNG stations in phases.

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    “The completion of these CNG stations in Lagos marks a significant milestone, offering motorists an alternative to petrol amidst long queues at filling stations.

    “The facilities would be opened for commercial operations within April and May to become the first of its kind in the state, which is now contending with long queues at filling stations,” Verma said.

    The NIPCO boss explained the competitive rates of AutoCNG compared to traditional fuels, saying

    he had a lot of confidence in AutoCNG, being the preferred fuel, especially with government support and media advocacy.

    According to him, the company has identified 19 CNG stations and had received stage-wise approval from the Nigerian National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other statutory authorities.

    Verma, who assured consumers of sustainable supply after the inauguration, added that for cars, taxis and three-wheel (Keke NAPEP/Marwa), AutoCNG is sold at N200 per standard cubic feet scm against the petrol price of N610 per litre in Lagos and N230 per scm against the PMS price of N670 per litre in Abuja.

  • NIPCO pays N563m dividends

     

    Shareholders of NIPCO Plc have approved payment of N563 million as cash dividends for the 2018 business year as the downstream oil and gas company recorded net profit of N1.58 billion. Shareholders will receive a dividend per share of N3.

    At the Annual General Meeting (AGM) in Abuja, NIPCO Plc Chairman Chief Bestman Anekwe said the company recorded total turnover of N254 billion in 2018 as it deepened petroleum products outlets and doubled its Liquefied Petroleum Gas (LPG) market share in Nigeria.

    He said the company has continued to record outstanding achievements despite the prevailing difficult environment in the last few years.

    He noted that NIPCO has maintained its culture of outstanding performance and industry leadership by focusing on pursuing its major objectives.

    “We are yet improving on our core competencies and remain committed to our vision of being the first choice company in the oil and gas industry to all stakeholders. We have maintained a constant expansion of our retail outlets and furthermore our company has maintained the lead in the LPG subsector by doubling the number of LPG skids and plants all over the country,” Anekwe said.

    According to him, the company’s strategic venture in the upstream sector will hopefully give it competitive advantage to explore new frontiers in the business environment.

    NIPCO Plc Managing Director Mr. Sanjay Teotia said the company plans to go into production of Liquefied Petroleum Gas (LPG) in its new investments surge.

    He said conscious efforts are being made in preparation for the take off of the LPG production.

    “Your company is thinking of venturing into LPG production against the background of the nation’s richness in natural gas. In the near future, we are going into its production,” Teotia said.

    According to him, the strategy to diversify and grow the streams of income through the expansion of the company’s oil and gas business will gain momentum in the period ahead.

    He pointed out NIPCO currently possesses the largest and the most active LPG storage facility and it has remained the supplier of choice.

    “Our shareholders will continue to smile with good returns on their investment year in year out but with a caveat that challenges in the sector are addressed headlong by concerned stakeholders,” Teotia said.