Tag: Savannah Energy PLC

Nigeria and Africa’s oil & gas and power sectors are on the rebound, encouraged by bold and strategic reforms as well as exploration opportunities that hold promises of bountiful returns to energy companies willing to undertake disciplined execution of key hydrocarbon and energy projects (both thermal and renewable) across Nigeria and other African markets. Assistant Editor CHIKODI OKEREOCHA looks at how some of the project executions resulted in robust financial and operational performance for discerning investors.

Chief Executive Officer, British independent energy company, Savannah Energy Plc, Andrew Knott, barely conceals his joy and excitement these days. When The Nation met him over the weekend, an evidently elated Knott confirmed that “2025 has been a year of strong progress against the nine focus areas we set out at the beginning of the year, one of which is increasing our rate of cash collections in Nigeria, with performance remaining on track.”

He said Savannah Energy has continued to showcase its resilience and financial robustness, as evidenced by its recently published financial and operational performance report for the nine months ending September 30, 2025, pointing out that the report clearly showed that the energy firm company’s is on positive growth trajectory in Nigeria and throughout Africa from to the previous year.

The nine-month financial and operational performance update, which Knott gleefully made available to The Nation, revealed, for instance, that Savannah Energy’s total revenues increased by nine per cent to $185.2 million, up from $169.3 million during the first nine months of 2024. Additionally, the company smiled to the bank with a five per cent rise in cash collections totaling $241.6 million, compared to $229.3 million in the same period of 2024.

The company’s operational performance is also telling. For instance, in the nine months under review, Savannah Energy’s gross production in Nigeria, based on the report, averaged 20.1 Kboepd (Thousand Barrels of Oil Equivalent per Day), with 85 per cent of this being gas. The company noted a significant production increase at its Stubb Creek facility, reaching 3.3 kboepd, which is 24 per cent higher than the 2024 average.

This growth, according to Knott, is part of the company’s 18-month expansion programme, following the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited in March of this year. Furthermore, well-site construction is advancing well for the Uquo North East development well, which is set to begin drilling in January 2026, with initial gas expected by the end of that quarter.

The Uquo North East development well is targeting volumes of up to 80 MMscfpd (Million Standard Cubic Feet per Day). This will be succeeded by the consecutive drilling of an exploration well on the Uquo Field, known as Uquo South.

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Recall that earlier this year, the company announced a 21 per cent upgrade in 2P Reserves (i.e. proved plus probable reserves) for its Uquo gas field and a 29 per cent upgrade for its Stubb Creek oil field 2P Reserves. Together, these advancements, the CEO said, illustrate the strong operational momentum within the Group and its unwavering commitment to disciplined execution across all facets of its business.

That’s not all. Savannah Energy has also announced the successful completion and full commissioning of its new compression system at the Uquo Central Processing Facility. This project, Knott said, was delivered safely and approximately 10 per cent below the original budget of $45 million, and it is anticipated to enable the company to optimise production from both its current and future gas wells.

The CEO also confirmed that his company has reached an agreement for a gas contract extension with Central Horizon Gas Company Limited, which will run until December 2026, allowing for up to 10 MMscfpd.

Savannah is also broadening its presence across Africa. For example, in Niger, it is contemplating the initiation of a four-well test programme and a return to exploration activities in the R1234 PSC contract area in 2026/27, contingent upon reaching a satisfactory agreement with the government of the country.

However, beyond its inroad into the oil & gas sector, Savannah Energy’s footprints on the power sector, drawing strength from strategic reforms in Nigeria and other African markets are noticeable. For instance, the company is advancing its strategy to acquire minority stakes in three hydropower projects in East Africa, which includes the 255 MW Bujagali power plant in Uganda, operational for 13 years and supplying approximately 30 per cent of the nation’s electricity.

There are also two additional projects that are in advanced development stages and are expected to provide power to over 30 million individuals in the region. This acquisition will extend Savannah’s reach into five new countries, namely Uganda, Burundi, the Democratic Republic of Congo, Malawi, and Rwanda.

The company is also making progress on its existing priority Power Division projects in Africa, including the up-to-250 MW Parc Eolien de la Tarka wind farm project in Niger, which is expected to fulfill around 20 per cent of the country’s electricity demand by 2029, and the up-to-95 MW Bini-Warak hybrid hydroelectric and solar project in Cameroon, anticipated to enhance the current on-grid electricity generation capacity in northern Cameroon by over 50 pert cent.

Savannah is also actively exploring opportunities in both the thermal and renewable power sectors, with plans to announce additional transactions, currently under review, within the next 24 months in the African power space.

However, increasing the rate of its cash collections in Nigeria, as Knott earlier noted is one out of the nine focus areas the company set out at the beginning of the year. Other focus areas, according to the CEO, include advancing the re-financing of its principal Nigerian debt facilities, which it expects 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.

British independent energy company Savannah Energy Plc has announced a 21 per cent increase in proved and probable reserves (2P Reserves) at its flagship Uquo field in Nigeria, bringing the total Reserves increase on the field since acquisition to 81 per cent

In oil and gas industry, proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable, while probable reserves are oil deposits with at least a 50 per cent chance that what is available can be extracted for use.

Savannah Energy’s 21 per cent increase in 2P Reserves, according to CEO Andrew Knott, follows3 the company’s announcement of a 29 per cent increase in 2P Reserves on the Stubb Creek field in May 2025.

Knott, while announcing Savannah Energy’s 2024 results at the weekend in line with its trading statement released in January 2025, described 2025 as “an exciting year for the business”

Savannah Energy’s unaudited results for the year  ended 31 December, 2024 showed total income of $393.8 million, compared to $289.8 million in 2023.

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This comprises of total revenues of $258.9 million, compared to $260.9 million in 2023, and other operating income of $134.9 million, compared to $28.9 million in 2023.

The results also show that Savannah Energy achieved or exceeded its previously issued financial guidance for the year, with its total revenues as of December 31 2024 standing at $ 258.9 million, six per cent ahead of previously issued guidance of greater than $245 million.

Likewise, its operating and administrative expenses for the year came to $71.0 million, which is five per cent below previous guidance of up to $75.0 million.

Its capital expenditure stood at $23.1 million, well below the previously issued guidance of up to $50 million due to the phasing of spends. 

The company also reported a record cash collection of $248.5 million in FY 2024, an over 21 per cent increase on its FY 2023 cash collections of $206 million.

Its cash balances as of 31 December 2024 stood at $32.6 million, compared to $107.0 million as of 31 December 2023, and a net debt of $636.9 million, compared to $473.7 million by the end of December 2023.

In the same vein, its gross debt as of 31 December 2024 was $669.5 million, of which $630.6 million (94 per cent) was non-recourse to PLC.

Savannah’s Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) stood at $181.2 million, broadly in line with prior year’s $184.1 million, while maintaining its Adjusted EBITDA margin at 70 per cent, which was 71 per cent in 2023.

The results, which were made available to The Nation, also showed that in terms of assets, its total group assets increased to $1.6 billion as of 31 December 2024, compared to $1.5 billion in 2023.

In terms of operations, the results show that its average gross daily production was 23.1 Kboepd, broadly in line with FY 2023’s 23.6 Kboepd (thousand barrels of oil equivalent per day), of which 88 per cent was gas which was 91 per cent in 2023.

Knott affirmed that “2025 continues to be an exciting year for the business and we continue to work towards “ticking-off” the delivery of the nine focus area projects that we outlined at the beginning of the year.”

He listed the focus areas to include securing a further increase in the company’s rate of cash collections in Nigeria; completion of the refinancing of its principal Nigerian debt facilities; completion of the planned acquisition of 100 per cent of Sinopec International Petroleum Exploration and Production Company Nigeria Limited.

The acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) was achieved during Q1 2025, precisely on 10 March 10, 2025.

This was followed by the commencement of work on an up to 18-month expansion programme, anticipated to increase gross production to approximately 4.7 Kbopd.

Others focus areas are commencement of the Stubb Creek expansion project; advancement of the Chad/Cameroon arbitration processes; commencement of the safe and successful drilling of the planned Uquo development well and potential Uquo exploration well.

Knott also listed the potential advancement of Savannah Energy’s R3 East development in Niger; refinement of the company’s power sector business model; and the delivery of further transformational acquisitions as other focus areas.

“I would also highlight that we anticipate achieving a strong increase in cash collections in 2025 (even when set against our long-term 13 per cent CAGR4), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed,” he stated.