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Buffett is bullish on energy “ When the dust settles, America’s power needs and the consequent capital expenditure will be staggering”

https://www.forexlive.com/news/warren-buffett-capital-spending-on-americas-power-needs-will-be-staggering-20240226/amp/

Thanks Zengas - as ever appreciate your thoughts but at the same time the company could do a lot better with comms on such questions in my opinion, answers even as small as the one you provide for example go along way. I am hoping sooner or later Savannah are able to fully articulate the full value of the accugas asset

Zengas - One thing that will be interesting is how the company and market values third party gas reserves for example the gas that goes through our network from Amocon, the company did mention they see a lot of stranded gas assets that can be converted or utilised through our pipeline.

It will be interesting to see the book value of 2p reserves from third party licences or acreage and how they can value this or provide numbers to for example the gas that we get from AMOCON is licence OML 156, I couldn't find 2p reserve number for this licence online, but it would be interesting data point purely because if Amocon have significant reserves and the only way to cash in is through our pipeline than that gas effectively strengthens our 2p numbers albeit not our gas if that makes sense.

Any thoughts on this ?

Scotpak - agreed but clearly still plenty of deliberation ongoing still, one would think if Petronas and Savannah have kept it alive till now, neither parties will flake out. So effectively forcing the SS government to take a formal stance on the deal either through an approval or formal rejection.

Tier - Sounds to me like they are clinging on to Petronas I wonder if they are trying to convince them to stay. Approvals still seem far away 4 weeks to go don't think we will get it to be fair.

#South_Sudan's Trade Minister and Ambassador meet Mark Fitzgerald, Vice President of #Petronas for Intl. Assets, in #Malaysia to discuss the company's activities in 🇸🇸. However, in December 2022, Petronas decided to sell its entire oil and gas business in 🇸🇸 to Savannah Energy.

https://twitter.com/PatrickHeinisc1/status/1762424020379505150

Noix - 200 mmcfd is the amount of treated / processed gas, our total capacity is 600 mmscfd. So that's the difference it depends on whether the customer wants treated gas or untreated where they are happy to process themselves. I would imagine most customers would want treated gas and hence we commenced the cpf capital expenditure

Recovery of Naira is a 3 step process:

1) Mop up excess black market liquidity so speculators and arbitrage trading does not affect naira stability.

2) Increase dollar exports and decrease dollar imports

3) Make oil and gas investment attractive through regulation thus increasing FDI through it's oil and gas sector/

If Nigeria can do all this than I am confident Nigeria can reverse all the devaluation that happened since June 2023.

Although it will need the Nigerian federal government, central bank and oil and gas regulators like minister of petroleum alongside NNPC to work together in this, it's possible but requires openess from all parties and ego's and politics will need to be put aside

If Nigeria can increase it's oil exports mainly through oil and with the additional reforms supporting it I can see Naira trading below 1000 against by end of 2024. Any significant refinery surplus which can be exported will bring in US dollars inflow to Nigeria, whilst domestic oil refinery product providing fuel to Nigeria should alleviate dollar import pressure of importing fuel from foreign countries.

Therefore it's highly important for Nigeria to get all it's refinery in full flow this year to export markets whilst also meeting domestic demand.

Some additional significant news on Naira today

https://africa.businessinsider.com/local/markets/nigerias-central-bank-resumes-sale-of-dollars-to-bureau-de-change-operators/z3hdnyd

https://www.bloomberg.com/news/articles/2024-02-27/nigeria-delivers-jumbo-rate-hike-to-aid-its-battered-naira

There is discontent in every country in the world at the moment rocky, tell me a country where there isn't a political, social, economic or geopolitical crisis.

Whilst I am fully cognisant that that the risk is always heightened in African countries, I would be surprised if it led to a coup in Nigeria the probability is never zero as one would never want to tempt fate but I would still say the probabilities are on the lower end of the spectrum.

A lot of the crisis has been driven by de-valuation of Naira, but that's an active decision that the federal government took short to attract foreign direct investment short term pain for long term gain.

Zengas - On the below does the below mean we had 200 mmcf/d as processed export capacity prior to the CPF so with the CPF facility we are able to transport processed gas volumes of 400 mmcf/d. Still quite unsure as to the detail behind it

I think the company needs to highlight the benefits of this capital expenditure it terms of what it means for the accugas asset, it's important for the company to highlight the detail as it better informs the market of the potential accugas has as sometimes value can simply be misinterpreted if the company does not make an effort in articulating it's benefits even thought they could be transformational but sometimes can be lost due to the fact that market has not been fully informed of the benefits.

Trust - the compression project was to increase the gas export pressure to a maximum 81 bar and deliver 110 mmcf/d per train (x 2) if i've read it right. A $45m capex project with completion later this year.

Rockyride - it’s fake news…… It’s quite difficult to do a coup in Nigeria given the way its political structure and constitution is set up. I would put the chance of it happen below 1%

https://x.com/hqnigerianarmy/status/1761839691312119986?s=46&t=bdVeLrGB139mDog1SFRNlw

Anyone know the finer detail around CPF facility and what that does for us operationally for the accugas asset don’t think I have seen the detail behind it and what or how that transforms the company

Hopefully Niger is back in play now…………

Https://www.energyintel.com/0000018d-c744-d02b-abed-e7653b6b0000

Brilliant find Zengas and lots of news outlets reporting now.

Acquisitions or not savannah should get equipment in Niger in March and start operations in April / May. I hope they stop dilly dadle and final start paying Niger the attention it deserves sometimes concentrating on what you have is the best way to move forward.

Need to see a serious plan for Niger out in place now for the year

Https://nairametrics.com/2024/02/09/president-tinubu-signs-amended-electricity-bill-into-law/

Another week chalked off, all quiet on the savannah front, anyone got live trackers on where savannah staff are at

Https://www.linkedin.com/feed/update/urn:li:activity:7166378506141052928?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7166378506141052928%29