As International Oil Companies divest from carbon-intensive oil and gas projects, independent players are taking on the challenge of sustainably developing hydrocarbons in Africa. Given the continent’s growing demand and industrialization efforts, bringing new oil and gas supplies on the market has become increasingly vital. Companies such as African-focused British-based independent energy company Savannah Energy Plc (“Savannah”) are spearheading efforts to unlock the full potential of Africa’s hydrocarbons, alongside utility-scale renewable energy projects across the continent, and are set to play a much larger role as African countries invite new investment into the energy sector.
Savannah has joined the African Energy Week (AEW) 2023 conference – taking place from 16–20 October in Cape Town – as a Bronze Sponsor, and will leverage the platform’s networking opportunities to connect with governments and policymakers. The event serves as the largest gathering of energy stakeholders on the continent, and offers sponsors and delegates alike the chance to sign strategic deals. Savannah’s CEO Andrew Knott and senior managers will speak at the conference this October, providing insight into the company’s development agenda, top priorities in the short- and long-term, and commitment to partnering with African countries in pursuit of energy security.
Representing a key driver of sustainable energy developments, Savannah’s participation at AEW 2023 will not only help showcase the opportunities for independents in Africa but will help promote the role oil and gas continues to play in making energy poverty history on the continent. Through sustainable and technology-led operations, companies such as Savannah are a testament to the commerciality and potential this industry offers. The company has an active footprint across the continent as well as plans to expand its presence even further. In December last year, Savannah announced its proposed US$1.25bn acquisition of PETRONAS International Corporation Limited’s entire oil and gas business in South Sudan, comprising interests in 64 producing fields.
In Nigeria, the company is active in both the up- and midstream oil and gas industries. The company’s upstream assets include two large-scale onshore oil and fields – Uquo (80%) and Stubb Creek (51%) – while in the midstream, holds a controlling 80% interest in Accugas, a business which operates a 200 million standard cubic feet per day processing facility and a 260km gas pipeline network. Accugas currently supplies approximately 24% of the country’s thermal power generation capacity.
Meanwhile, in Niger, Savannah’s license interests cover approximately 50% of the country’s primary petroleum basin, the Agadem Rift Basin., while in Cameroon, Savannah owns an effective 41.06%1 interest in the Cameroon Oil Transportation System. As such, Savannah continues to position itself as a key E&P driver in Africa.
Further to these, Savannah’s investments in renewable energy projects in Africa underscores its commitment to sustainable energy. Through its renewable energy division, the company has announced up to 525 MW of hydroelectric, solar photovoltaic and wind energy projects on the continent to date. These include the up to 75 MW Bini a Warak Hydroelectric Project in Cameroon, which is set to provide clean, stable and affordable power to Cameroon’s northern region, where it is expected to increase on-grid electricity generation capacity by over 50%. Project sanction is expected in 2024 with first power targeted in the 2027 to 2028 window.
As a Bronze Sponsor at AEW 2023, Savannah will participate in exclusive networking and panel sessions, showcasing the company’s growth strategy. Savannah will promote the role the company plays in Africa’s just energy transition, and how an integrated approach to energy development will help bolster energy security.
“Savannah has emerged as a strong partner for Africa. Through its operations in Nigeria, Cameroon and Niger, and its planned operations in South Sudan, the company is dedicated to unlocking the full potential of African oil and gas while supporting the continent’s just energy transition,” states NJ Ayuk, the Executive Chairman of the African Energy Chamber (AEC).
“Savannah's primary focus is on participating in Projects that Matter in Africa. We want to meaningfully contribute to the economic development of the countries in which we operate through the development of businesses and projects that make a material difference to those countries. Lower income countries, where the need for low priced energy to deliver life changing economic growth is highest, will see hydrocarbons form a much greater part of their energy mix in the decades to come compared to the developed world. Therefore, we fully expect to continue to acquire, develop and operate hydrocarbon businesses and re-invest the cash flows we generate into both hydrocarbon and renewable energy projects for the benefit of our host countries. We firmly believe that Africa needs both hydrocarbons and renewables if it is to be given the opportunity to grow and lift ever more of its citizens out of energy poverty.” Andrew Knott, CEO of Savannah.
AEW is the AEC’s annual conference, exhibition, and networking event. AEW 2023 will unite African energy policymakers and stakeholders with global investors to discuss and maximize opportunities within the continent’s entire energy industry. For more information about AEW 2023, visit www.AECWeek.com.
On 20 April 2023, Savannah announced that its wholly owned subsidiary, Savannah Midstream Investment Limited (“SMIL”), had signed a Share Purchase Agreement with the national oil company of Cameroon, Société Nationale Des Hydrocarbures (“SNH”) for the sale of 10% of the issued share capital in the Cameroon Oil Transportation Company (“COTCo”). Completion of the transfer of the shares from SMIL to SNH will result in SMIL’s shareholding in COTCo reducing from 41.06% to 31.06%.
Distributed by APO Group on behalf of African Energy Chamber.
Source: Apo-Opa
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