31 Jan 2020 07:00
31 January 2020
Savannah Petroleum PLC
("Savannah" or "the Company")
Addition of New Customer to Accugas
Savannah Petroleum PLC, the British independent oil & gas company focused around activities in Niger and Nigeria, is pleased to announce that Accugas has entered into a new interruptible gas sales agreement ("IGSA") with First Independent Power Limited ("FIPL") in relation to the provision of gas sales to the FIPL Afam power plant ("FIPL Afam"). FIPL is an affiliate company of Sahara Group, a leading international energy and infrastructure conglomerate with operations in over 42 countries across Africa, the Middle East, Europe and Asia.
Afam has a current power generation capacity of 180MW. The FIPL IGSA envisages the supply of gas (produced by Uquo, with a maximum daily nominated quantity of 35 mmscfd or approximately 5.8 mmboed) 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. Securing an additional gas supplier to the FIPL Afam plant is another demonstration of FIPL's commitment to its vision of being a stable power generation significantly contributing to the national grid.
Accugas currently sells to three customers, Calabar Nigerian National Integrated Power Plant, National Integrated Power Project (a Niger Delta Power Holding Company-owned power station), the Mfamosing Cement Plant (located in Cross River State, owned by Lafarge Africa Plc) and Ibom Power (a power station owned by Akwa Ibom State), for an aggregate maintenance-adjusted 2020 take or pay volume of 141.4 mmscfd. The commercial terms of the FIPL IGSA are expected to augment the weighted average profitability of the Accugas portfolio while Accugas' sales volumes, revenues and cash flows are expected to increase with no incremental capital expenditure.
Accugas continues to make good progress in relation to gas supply to several other potential new customers and further updates will be provided in due course.
Andrew Knott, CEO of Savannah Petroleum, said:
"I am delighted to announce the IGSA 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. 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, Sahara Power Group said:
"We are delighted to be working with Accugas on this 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."
For further information contact:
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Savannah Petroleum | +44 (0) 20 3817 9844 |
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Andrew Knott, CEO |
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Isatou Semega-Janneh, CFO Sally Marshak, Communications |
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Sahara Group Kola Adesina, GMD Sahara Power Group Godwin Emmanuel, CEO FIPL Bethel Obioma, Head Corporate Communications
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+234 (0) 802 764 5730 |
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Strand Hanson (Nominated Adviser) | +44 (0) 20 7409 3494 |
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Rory Murphy |
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James Spinney |
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Ritchie Balmer |
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Mirabaud (Joint Broker) | +44 (0) 20 7878 3362 |
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Peter Krens |
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Ed Haig-Thomas |
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Numis Securities (Joint Broker) | +44 (0) 20 7260 1000 |
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John Prior |
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Emily Morris |
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Alamgir Ahmed |
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Jefferies International Limited (Joint Broker) | +44 (0) 20 7029 8000 |
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Tony White |
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Will Soutar |
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Celicourt Communications | +44 (0) 20 8434 2754 |
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Mark Antelme |
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Jimmy Lea Ollie Mills |
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The information contained within this announcement is considered to be inside information prior to its
release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with exploration and production assets in Niger and Nigeria. Savannah's flagship assets include the R1/R2 and R3/R4 PSCs (which cover c.50% of the highly prospective Agadem Rift Basin ("ARB") of South East Niger) and interests in the cash flow generative Uquo and Stubb Creek oil and gas fields and an interest in the Accugas midstream business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on the Company's website: http://www.savannah-petroleum.com/en/index.php
About the Sahara Group and First Independent Power Limited
Sahara Group is a leading international energy and infrastructure conglomerate with operations in over 42 countries across Africa, Middle East, Europe and Asia.
The Group's affiliate, Sahara Power Group ("SPG"), is the largest privately owned vertically integrated power company in Sub-Saharan Africa, with plans to expand its generation capacity to exceed 5,000MW by 2023. The Sahara Group's portfolio includes Egbin Power Plc (the largest thermal power plant in Sub Saharan Africa ex. South Africa), Afam, Eleme, Trans Amadi and Omoku Plants.
Sahara Group successfully acquired majority shareholding stakes in two of the Power Holding Company of Nigeria ("PHCN") assets under the privatization initiative of the Nigerian Government, namely Egbin Power Plc (the largest privately owned power generation plant in Sub Saharan Africa) and Ikeja Electric Plc (one of the largest power distribution companies in Sub-Saharan Africa).
In addition, the Sahara Group through its affiliate - NG Power HPS Ltd acquired a 70% stake in First Independent Power Limited ("FIPL"). FIPL owns and operates four power plants privatised by Rivers State in 2014, including the Afam gas-fired power station ("Afam").