Business
Savannah Energy Offers 2025 Year-to-Date Operational, Financial Updates
The Savannah Energy PLC, has provided update on its operating and financial performance for the seven months to 31 July 2025.
It gave a proviso that all figures were yet to audited.
The update shows that its gross production in Nigeria averaged 21.0 Kboepd (7M 2024: 24.3 Kboepd), of which 86% was gas (7M 2024: 89%). Its Total Revenues during the period was US$147.3 million, up by 4% compared to the Total Revenues of US$142.1 million in the first seven months in 2024.
The company also reported a 37% increase in cash collections YoY and a 12% improvement in the trade receivables balance compared to YE24. Cash collections for the seven months to 31 July 2025 were US$219.2 million, compared to US$160.0 million in the same period in 2024. Its trade receivables balance as of 31 July 2025 stood at US$476.4 million (YE24: US$538.9 million). As of 31 July 2025, cash balances were US$93.7 million (YE24: US$32.6 million) and net debt stood at US$591.9 million (YE24: US$636.9 million). This included debt associated with the SIPEC Acquisition and, which if excluded would have further reduced the net debt to US$549.5 million. It noted that only 6% of outstanding debt as of 31 July 2025 is recourse to Savannah, with the balance sitting within subsidiary companies on a non-recourse basis.
Operationally, Savannah has signed a turnkey drilling contract for up to two wells on the Uquo Field, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of Q1 2026. Uquo NE is forecast to provide up to 80MMscf/d of gas and will utilise the recently commissioned Uquo compression project, achieved 10% below budget, allowing Savannah to maximise the production from both its existing and future gas wells. Its Stubb Creek asset continues to perform well, buoyed by the ongoing production expansion, with current daily production of 3.2kbopd, up 20% on 2024, and is targeting further increases in production as it progresses the planned expansion programme there.
According to the update, the refinancing of its US dollar debt within its Accugas subsidiary is ongoing with an agreement close to being finalised with a consortium of five Nigerian banks to secure an increase in the Nigerian facility to NGN772billion (approximately US$503 million) to allow Accugas to repay its remaining c.$200m of US dollar-denominated debt during H2 2025.
As it previously announced, Savannah is in the process of refining its Power Division business model, the remit of which has now been expanded to include potential thermal as well as potential renewable energy projects. It continues to progress its existing portfolio of up to 696 MW of wind, solar and hydroelectric projects, with its principal focus projects being the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.
Its Parc Eolien de la Tarka project has made significant progress in the year to date, with Niger’s Minister of Energy confirming that the project is on the Government’s list of priority projects, as Savannah continues to progress the additional Environmental and Social Impact Assessment (“ESIA”) field work studies required for the full ESIA, which its expect to complete and submit to the relevant authorities in H2 2025. The Company is negotiating outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the International Finance Corporation (World Bank) and the US International Development Finance Corporation.
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Negotiations with the Government of Cameroon are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to develop the project further.
On these, Andrew Knott, CEO of Savannah Energy, said, “I am pleased to provide a trading update for the first seven months of 2025, highlighting Total Revenues1 of US$147.3 million and good progress in our core objectives for the year, including a 37% increase in cash collections year-on-year, with almost US$220 million collected in the year to date, and a 12% improvement in the Trade Receivables balance compared to year-end 2024.
We are also reporting today that we have signed a turnkey drilling contract for up to two wells on the Uquo Field in Nigeria, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of that quarter. Uquo NE is forecast to provide gas volumes of up to 80 MMscfpd, which may be followed by the drilling of an exploration well, Uquo South, targeting an Unrisked Gross GIIP of 131 Bscf of incremental Prospective gas Resources. Our Stubb Creek asset continues to perform well, with current daily production of 3.2 Kbopd, up 20% on the average level for 2024. We continue to target further increases in Stubb Creek production as we progress the planned expansion programme there.
2025 continues to be an exciting year for the business and we continue to work towards “ticking-off” the delivery of the nine focus area projects that we outlined at the beginning of the year, being: (1) securing a further increase in our rate of cash collections in Nigeria2; (2) completion of the refinancing of our principal Nigerian debt facilities; (3) completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) which was achieved during Q1 2025; (4) commencement of the Stubb Creek expansion project which was achieved during Q2 2025; (5) the advancement of our Chad/Cameroon arbitration processes3; (6) the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well; (7) the potential advancement of our R3 East development in Niger4; (8) the refinement of our power sector business model; and (9) the delivery of further transformational acquisitions.
I look forward to reporting further progress towards the achievement of many of our focus area projects at the time of our half year results in September and in the months that follow.”
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
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The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
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Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”
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