SAVP.L Share News (SAVP)

(Sharecast News) - Niger and Nigeria-focussed oil and gas company Savannah Petroleum announced on Friday that its Accugas operation has entered into a new interruptible gas sales agreement with First Independent Power (FIPL), in relation to the provision of gas sales to the FIPL Afam power plant.
The AIM-traded firm said FIPL is an affiliate company of Sahara Group - an energy and infrastructure conglomerate with operations in more than 42 countries across Africa, the Middle East, Europe and Asia.

It said Afam had a current power generation capacity of 180MW, with the gas sales agreement envisaging the supply of gas by Accugas to FIPL Afam in order to augment its existing gas supply on an interruptible basis, for an initial term of one year with the ability to extend upon mutual agreement.

"I am delighted to announce the interruptible gas sales agreement with FIPL, representing the first new gas sales agreement that the Accugas business has signed in over five years, and we look forward to partnering with the Sahara Group, who have notable experience with energy and infrastructure projects in Africa," said chief executive officer Andrew Knott.

"We are confident that this will be the first of several new gas sales agreements signed over the course of 2020 and, through Accugas, we aim to be seen as the gas supplier of choice to the power sector in Nigeria."

Kola Adesina, group managing director of Sahara Power Group, added that the company was "delighted" to be working with Accugas on the project.

"It is another demonstration of our commitment to bringing energy to life by facilitating economic activities through our power business.

"We remain resolute in our vision to enhance access to sustainable energy in Nigeria and ultimately, across Africa."

At 1518 GMT, shares in Savannah Petroleum were up 1.63% at 18.09p.