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The paragraph below no sense at all in particular this line "Chad is actively seeking collaboration with local and international entities that share mutual interests in driving upstream exploration"
This is what Savannah was planning to do, african oil and gas is so convoluted, it's hard to make sense of it all really what they promote publicly and what they do in reality is so misaligned and they still want to attract investment.
It's clear to see nationalising the asset and taking over petronas stake without a plan will only lead to lack of investment and they simply don't have the technical expertise to increase production.
Chad remains open to strategic partnerships aimed at developing its resources, notably in the Doba Basin, a cornerstone of the country’s oil production. Previously explored by industry giants ExxonMobil and Shell, the basin is estimated to hold significant untapped hydrocarbon potential and is home to the Kome heavy oil field, which contributes roughly 7% to the country’s daily output. Chad is actively seeking collaboration with local and international entities that share mutual interests in driving upstream exploration and harnessing the country’s oil and gas resources for added socioeconomic development and energy security.
https://energycapitalpower.com/chad-gears-up-for-new-investment-ahead-of-iae-2024/
Poor article which highlights many of the problems in dealing with these people but omits arguably the most important one
, Savannah's dispute with Chad and the nationalisation of our assets. Threatening and doing are somewhat different animals, although both members of the same family. The follow on from this is of course the negative impact this must be having of further international investment in Chad.
Quite incredible that the author skirted round it.
Savannah gets a wee mention in this interesting article by forbes. Hoping that ICSID are able to really come to a ruling quickly in our favour, if they don't than it could send a dangerous precedent for future countries attempting to nationalise resource without doing a proper transaction putting a lot of foreign direct investment at risk
https://www.forbes.com/sites/arielcohen/2024/03/04/chaos-in-chad-endangers-energy-experiment/
Looks like we participated in Nigeria energy summit last week
https://www.linkedin.com/feed/update/urn:li:activity:7170732259229028353?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7170732259229028353%29
Just to clarify, those figures are the unrisked estimates.
CNPC are in Chad so i doubt there's been any real issue for them given they had a fairly large supply base and they own Great Wall drilling with another base already in Niger so i would presume they would have been well stocked after Covid restrictions.
Many of Saves exploration prospects are clustered close to the existing hub of 4 fields.
Three of the existing fields have deeper targets of a net 24 - 71 mmbo potential over and above the existing 109 mmbo 3C in the discoveries - all medium risk.
Out of 8 further prospects,
2 have low risk net of 73 - 209 mmbo.
3 have medium risk of 139 - 409 mmbo
A further 3 have a high risk net of 148 - 470 mmbo.
Overall theres in excess of 440 - 1150 mmbls net to be targeted in the next 11 drills, 3 of which are on existing fields over and above the existing 33 mmbo 2C.
Zengas - On Niger, I am of the firm belief that the company need to do infrastructure led exploration, get drilling in areas where access to pipeline and tie in are relatively wast and less costly. We could go for a partner but it would depend on the the split, who maintains operatorship and how aggressive they are in a drilling programme, but i fully concur with you Zengas if CNPC as reported have started to produce for first export in Mat than how are they getting there supplies into Niger, these are questions that frankly need to be answered.
RR Kosmos are paying down some of their commercial debt facility but at the end of the day these $300m convertible notes just replace that with the same level of indebteness to 2030.
66,000 boepd production Q4 2023 representing 12% growth over previous year.
" 2P reserves as of year-end 2023 are approximately 520 million boe"
Revenue $507m Q4 2023 and $1.72 billion for f/yr 23.
Net debt end 2023 = $2.39b.
Off their more than £6 high to £4.50 to day with a m/cap of £2.12 billion (471.5m shares).
=============================================
Come on Save - One and for all, no excuse in Niger with ample opportinity to bag more than 500 mmbo reserves from the very low risk Sokor Alternances and an operational export pipeline expanding to more tham 300k bopd with p/stations as well as a refinery. CNPC has bagged over 1 billion bl reserves from the Sokor Alternaces with an 80% success rate.
Sokor Alternances Formation: This has been the principal focus of exploration in the ARB to date; all of the Savannah discoveries are from within this sequence, as are a high proportion of the discoveries made by CNPC (p 143 ad doc 2021). Get that pressure communication/compartment sections in Amdigh evaluated soon which could determine a significant 2P reserves upgrade from the 3C level.
Current net 2C from Amdigh, Bushiya, Erida and Kunama 33.3 mmbo. 3C = 109 .1 mmbo P147 adm doc 2021).
(Figure 1-2) with a total Unrisked Best Estimate of c. 6.7 bn bbls Oil Initially In-Place. In addition to the prospect and lead inventory within proven plays, Savannah has also identified several new, potentially significant exploration plays which offer genuine high risk, high reward upside. P392.
“Kosmos Energy Ltd. Announces Offering Of $300 Million Of Convertible Senior Notes Due 2030”
Interesting that they are using the $300m to pay down their debt.
Another Interesting Article - I wonder if they are hinting at Savannah Energy here
The president's sentiment was echoed by Joseph Bakosoro, minister of Presidential Affairs, who also doubles as the chairman of the Nilepet Board of Directors. Bakosoro urged oil institutions to desist from unnecessary bureaucracy, which serves as a stumbling block for foreign companies to acquire exploration blocks.
"Too much bureaucracy is bad. Some of our partners came here three years ago, two years ago, even five years ago. And we cannot tell them either yes or no when they are applying to support projects. If you delay friends to discuss and reach a solution with them, then there are two things that might be the reason," he said.
"One, either you, who is being consulted by partners, do not know what you're doing and you continue delaying them because you're ignorant or you're asking for a kickback. This should not be the case."
The minister appealed to oil institutions to ease the investment process for potential foreign partners, reiterating the need for timely feedback on the status of their applications or proposals, adding that South Sudan needs investors in the oil sector to move forward.
"We are a young country. We need to move our country forward. We want to attract partners. Then, we must work with them diligently, authentically, and professionally and tell them yes or no. Too much bureaucracy is bad bureaucracy. Therefore, I'm asking you, please, those in the oil field, attract our friends. When they come, leave everything and do the paperwork with them. If it succeeds, go ahead. If you disagree, tell them so that they go and look for other businesses somewhere," he said.
The country's oil sector remains under the control of foreign partners after the government resolved in October 2023 that Nilepet needed further capacity building to take over the ownership of the country's oil sector.
https://www.southsudanminingjournal.co/en/post/nilepet-hqs-inaugurated-with-presidential-call-for-oil-production-surge/600
This article covers South Sudan Oil sector. Why don't they approve a willing operator like savannah would will increase oil production they have an option on the table already so no point of pointing fingers, it's the lack of government approvals and transparency that is hindering south sudan not lack of willing operators and capital.
Approvals and transparent governance dives capital and growth, clearly they them self know that they are a hindrance to their own prosperity purely out of politics and corruption
https://www.southsudanminingjournal.co/en/post/institutional-fragility-driver-of-economic-woes---claims-official/596
Demand for Nigeria Bonds is increasing and thus will increase dollar flow into the Nigeria, hopefully this finally unlocks the accugas debt re-finance
https://www.bloomberg.com/news/articles/2024-03-04/nigeria-central-bank-says-foreign-demand-up-in-sign-policy-works
Let’s hope she’s not only right but also happens a lot sooner.
I hope not!
It is unacceptable that it has not been possible to trade SAVE shares since 2022.
Interesting small acquisition by Vaalco. I think we should also take smaller acquisitions more seriously as I feel african governments are more likely to let smaller deals go through Afentra is a good example. I know people say that smaller acquisitions come with the same headache as bigger acquisitions, I beg to differ on this point I fully believe African government would be more easier on smaller deals
https://www.vaalco.com/investors/news-events/press-releases/detail/387/vaalco-energy-inc-announces-accretive-all-cash
Https://africaoilgasreport.com/section/in-the-news/
Includes a piece on SSudan.
Is it even possible AIM once again let us extend comes April?
I am referring to oil production of 10,000 Bopd below without any gas numbers
Longshort - ideally scenario would be to close out 2024 with 10,000 Bopd without acquisition. Uquo currently producing 2,000 Bopd, debottlenecked to increase to 5,000 Bopd and scaling Niger to 5,000 Bopd. That would be a great outcome without any acquisition plus increase in gas contracts
lets hope save haven't been sat on their ****s in niger as clearly cnpc haven't and we have made some progress since the last company update which seams like an absolute age now. £200m+ upfront payment for 50% share and possibly they even take operatorship. no excuses now as this was our original jewel and many of us have been here since it was all we had.
Anything related to oil production are clearly not inscope of disagreements as both hoping to benefit from revenues
Plenty of news outlets now reporting Niger pipeline commencement and oil production commencing in agadem
https://www.rfi.fr/fr/afrique/20240302-le-pipeline-niger-bénin-officiellement-mis-en-service?utm_medium=social&utm_campaign=x&utm_source=shorty
With our correspondent in Cotonou, Jean-Luc Aplogan
It was the Chinese company CNPC, in charge of the project, that informed its partners of the commissioning. The oil that comes out of the Agadem drilling in Niger can therefore now be injected into the pipeline to be transported to the terminal station in Sèmè Kpodji, Benin. Before arriving at the terminal, there are nine tanks to be filled on the route: six in Niger and three in Benin.
According to our interlocutors, this process conditions the first exports. It must be completed before considering the first exports of Nigerian oil. Experts give themselves a 60-day deadline, either at the end of April or early May. On occasion, an official ceremony could be organised.
From the extraction site to the terminal station, the pipeline crosses more than a thousand kilometres in Niger and nearly 700 in Benin. Estimates always remain on a production of 90,000 barrels per day. Benin will receive significant transit duties and tax revenues depending on the quantity exported.
When ECOWAS sanctioned Niger, many were worried about the future of this oil project. The Beninese authorities had said that the pipeline was not concerned. Since February 24, economic sanctions have been lifted.
Thanks for the insight, TIL.
I'm watching "I, Claudius" on youtube at present. Comparable levels of intrigue and skulduggery....
Approvals or not you can help but be assumed by all the contradictions of South Sudan politics especially to do with the oil sector
Here is key addressing for the ministry of petroleum and joint operating companies to increase oil production
President Salva Kiir has directed the Ministry of Petroleum to increase crude oil production.
The president spoke at the inauguration of the Nile Petroleum Corporation (NilePet)’s new headquarters this morning in Juba.
https://x.com/radiomiraya/status/1763981973016518883?s=46&t=bdVeLrGB139mDog1SFRNlw