* First oil expected in 2021
* Savannah looking to buy more assets in Nigeria
LONDON, April 30 (Reuters) - West Africa-focused oil and gasgroup Savannah Petroleum is considering selling aminority stake in its Niger assets before first oil flows there,which is expected in 2021, Chief Executive Andrew Knott said onMonday.
Savannah in 2014/15 was awarded the R1, R2, R3 and R4permits in southeast Niger's Agadem Rift Basin, which has 975million barrels in proven and probable reserves and output of20,000 barrels per day.
"I would expect us to retain at least 50 percent," Knotttold Reuters, adding the deal would probably consist of anupfront cash payment for back costs as well as money to coverfuture spending.
Savannah’s Niger permits contain an estimated 2.8 billionbarrels of oil in recoverable resources.
As part of its drilling campaign in Niger, Savannahdiscovered light oil in the R3 permit area last week.
Savannah is also looking to buy assets in bilateral deals inNigeria that are producing or can easily be put into production,he added.
It already produces around 20,000 barrels of oil equivalent- mainly gas - per day (boe/d) in Nigeria after it bought SevenEnergy's onshore fields last year, including proven and probablereserves of 92 million boe, and a 200 million standard cubicfeet per day gas plant and 260 km (160 miles) of pipelines.
Buyers of its oil include Exxon Mobil and for itsgas public institutions whose payments are guaranteed by theWorld Bank.
A variety of onshore assets in Nigeria are up for grabs,with oil major Shell still divesting and the governmentalso planning a fresh licensing round for inland basins.
Sources told Reuters that some indigenous companies arelooking to offload assets that they purchased when during oilprices were high, but do not have the cash to develop.
(Reporting by Shadia Nasralla; Editing by Dale Hudson)
