Savannah Energy has signed a deal to supply gas to Mulak Energy, in Nigeria, for a CNG project in Rivers State.
Savannah Energy has set out cost and capital expenditure cuts, while also revising a gas sales agreement in Nigeria with Lafarge Africa.
Last year was a “pivotal year” for Savannah Energy, the company has said announcing its 2019 preliminary results, as revenues flowed from its Nigerian portfolio.
Savannah Energy has paid down $40 million of debt as of the end of March as a result of its Nigerian gas supply business.
The Nigerian economy has a gas distribution and power generation problem. African Infrastructure Investment Managers (AIIM) is playing a part to tackle this, through its investment alongside Savannah Petroleum in assets previously owned by Seven Energy.
Savannah Petroleum expects to generate free cash flow of around $130 million per year from its recently acquired Nigerian assets, based on calculations from CGG Services.
It has been a long time coming, but Savannah Petroleum has completed its acquisition of Seven Energy, broadening its focus from Nigerien exploration to including Nigerian production.
Savannah Petroleum has signed a production sharing contract with the Niger government for the R3/R4 license area.