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Savannah Energy Shares Unaudited FY 2025 Operational, Financial Updates

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Savannah Energy has released its financial and operational update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.

Biztellers reports that the update shows that the company’s gross production in Nigeria averaged 18.8 Kboepd for FY 2025, of which 83% was gas (FY 2024: 88%). Following the completion of the SIPEC Acquisition in March 2025, it had commenced an 18-month expansion programme that saw its Stubb Creek average gross daily production increase to 3.0 Kbopd in 2025, approximately 13% above the 2024 average.

The report also shows that its cash collections in Nigeria increased by over 12% to US$278.0 million, compared to the previous year’s US$248.5 million, with the trend continuing into 2026 with cash collections during January 2026 at over US$64.4 million, compared to US$20.4 million in January 2024.

According to the report, Savannah’s total revenues for FY 2025 stood at US$235.0 million, compared to US$258.9 million in FY 2024. As at 31 December 2025, its cash balances stood at US$39.5 million, compared to US$32.6 million in FY 2024, with a net debt US$655.9 million, compared to US$636.9 million as at 31 December 2024. It also reported a Gross debt US$698.4 million as at 31 December 2025, of which only US$39.0 million (6%) was recourse to the Company, with the balance sitting within subsidiary companies on a non-recourse basis. Its Trade Receivables balance as at 31 December 2025 stood at US$507.2 million, a 6% improvement on year-end 2024’s US$538.9 million.

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Savannah also reported that it has made significant progress in refinancing its debt facilities. It reports that following the previously announced increase in the Accugas debt facility from NGN340 billion to up to approximately NGN772 billion as at 31 December 2025, there was a remaining principal balance under the US$ Facility of approximately US$2 million, which has been repaid in early 2026.

Savannah also provided new updates on its Uquo NE development well, the Uquo South exploration well, and the new compression system at the Uquo Central Processing Facility (“CPF”). It reports that site construction on the Uquo NE development well is expected to be completed this month, with the rig ready for deployment, and mobilisation scheduled over the next few weeks, with first gas from the facility targeted by the end of Q2 2026. Well site preparation has also commenced on the Uquo South exploration well.

According to the company, the newly completed and fully commissioned compression system at the Uquo Central Processing Facility which was delivered safely and approximately 10% under the original US$45 million budget, will enable it to maximise production from its existing and future gas wells. It also signed a gas contract extension agreement with the Central Horizon Gas Company Limited to end December 2026 for up to 10 MMscfpd.

On the renewable energy front, Savannah, which had in 2025 repositioned its power sector business model to pursue operating asset opportunities in both the thermal and renewable energy spaces alongside interests in large scale renewable energy development projects, said it has set itself the target of completing its proposed acquisition of indirect interests in three East African hydropower projects by H1 2026. The assets include the 255 MW Bujagali power plant, with a 13-year operating and payment track record, and two advanced-stage development projects, marking Savannah’s potential for entry into five new countries – Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda.

It is also continuing to progress its existing priority Power Division projects, including 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.

In Niger, its subsidiary is considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area in 2026/27, subject to a satisfactory agreement being reached with the country’s government.

Andrew Knott, CEO of Savannah Energy, said: “2025 was a year of execution for Savannah with good progress delivered across the nine focus areas we set out at the start of the year. In Nigeria, we increased our rate of cash collections year-on-year by 12%, a trend which we hope to continue into 2026, and have made significant progress in refinancing our debt facilities.

“In our Hydrocarbons Division, the completion of the SIPEC acquisition in March enabled us to commence an expansion programme at Stubb Creek, increasing 2025 production materially above 2024 levels. At Uquo we delivered the new compression system under budget and advanced site construction ahead of the planned commencement of drilling of the new Uquo NE well. During the year, we also announced a 21% 2P Reserves upgrade at the Uquo gas field and a 29% upgrade to Stubb Creek oil field 2P Reserves. In Niger, we remain actively engaged with the Government on future activity, with the R3 East development plan significantly enhanced during the year.

“In the power sector, we repositioned our business model and advanced both operating and development opportunities, including the proposed acquisition of interests in three East African hydropower projects, which is targeted for completion in H1 this year. We have also continued to progress on our wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several other opportunities under active discussion.

“We also continued to progress our arbitration claims, with the Savannah Chad Inc (“SCI”) and Savannah Midstream Investment Limited (“SMIL”) proceedings currently expected to be concluded in the first half of 2026.

“Overall, this progress provides a strong platform for continued delivery in 2026.”

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Nigeria’s Q1 Gas Production Increases to 687bscf, Flaring Drops 8%

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Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s gas production rose by about 3 percent in the first quarter of 2026, while gas flaring declined by over 8 percent year-on-year.

An analysis of the commission’s gas production status reports for the first three months of 2025 and 2026 revealed that total gas output increased from 667.27 Billion Standard Cubic Feet (BSCF) in Q1 2025 to 687.09 billion scf in Q1 2026.

The increase of approximately 19.81 billion standard cubic feet represented a year-on-year growth of about 2.97 percent, highlighting continued slow but steady expansion in Nigeria’s gas sector amid the federal government’s push to deepen gas utilisation and monetisation.

In addition, the NUPRC figures had it that January 2026 gas production stood at 233.96 billion scf, compared to 236.32 billion scf in January 2025.

However, production rebounded strongly in the subsequent months, with February 2026 output rising to 212.62 billion scf from 199.68 billion scf in February 2025.

In the same vein, March 2026 production climbed to 240.51 billion scf, compared to 231.28 billion scf recorded in March 2025, making it the highest monthly production level in the period under review.

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At the same time, the data showed marked improvement in gas flare management. Total gas flared in Q1 2025 stood at 50.95 billion scf, compared to 46.83 billion scf in Q1 2026. The reduction of about 4.12 billion scf translated to a decline of roughly 8.1 percent year-on-year.

Similarly, average flare intensity improved significantly during the period. The average gas flare rate dropped from about 7.65 percent in Q1 2025 to approximately 6.81 percent in Q1 2026, indicating that a larger proportion of produced gas was captured for productive use rather than burnt off.

In the same vein, monthly flare rates for Q1 2025 were 7.92 percent in January, 7.94 per cent in February and 7.08 percent in March. For Q1 2026, the flare rates declined to 7.34 percent in January, 6.62 percent in February and 6.48 percent in March.

The data also revealed a significant shift in the structure of Nigeria’s gas production. Associated gas production, which is gas produced alongside crude oil, declined during the review period.

Total associated gas output fell from 370.28 billion standard cubic feet in Q1 2025 to 332.82 billion standard cubic feet in Q1 2026. In contrast, non-associated gas production recorded substantial growth.

Non-associated gas output increased from 296.99 billion standard cubic feet in Q1 2025 to 354.17 billion standard cubic feet in Q1 2026, suggesting increased contribution from standalone gas projects and dedicated gas developments, rather than reliance on oil-linked gas production.

Also, export gas sales recorded one of the strongest improvements during the quarter. The NUPRC data showed that export gas sales rose from 223.99 billion standard cubic feet in Q1 2025 to 292.87 billion standard cubic feet in Q1 2026.

This represented an increase of about 68.89 billion standard cubic feet or approximately 30.75 percent year-on-year. Findings show that the increase was likely driven by stronger Liquefied Natural Gas (LNG) export performance and improved international demand for Nigerian gas supplies.

However, domestic gas sales weakened slightly during the same period. Domestic sales declined from 186.98 billion standard cubic feet in Q1 2025 to 171.15 billion standard cubic feet in Q1 2026, representing a drop of roughly 8.5 percent.

This raised concerns regarding the adequacy of gas supply to Nigeria’s domestic market, especially for power generation and industrial use. Despite the decline in domestic sales, gas utilisation efficiency improved marginally due to lower flare volumes.

The improved flare metrics suggested that operators were more efficient in capturing and commercialising produced gas. According to the data, total utilised gas stood at 639.91 billion scf in Q1 2025 and 639.68 billion scf in Q1 2026, indicating relatively stable utilisation volumes despite higher production.

With proven gas reserves estimated at about 215.19 trillion cubic feet (TCF), Nigeria has in recent years increasingly prioritised natural gas as a transition fuel capable of supporting domestic energy needs, industrial growth, petrochemical expansion and export earnings.

The federal government has also intensified efforts to reduce routine gas flaring through stricter regulatory enforcement and commercialisation initiatives targeted at flare gas recovery, especially through the Nigerian Gas Flare Commercialisation Programme (NGFCP).

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Energy

Renewed US-Iran Tensions Drag Oil Price Northwards

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After the United States carried out what it described as defensive strikes in southern Iran, which put fresh question marks over the fragile ceasefire and ongoing peace talks between Washington and Tehran, oil prices spiralled on Tuesday.

The world is taken aback because the strikes came in the midst of hopes that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

Consequently, from about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 percent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

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Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

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Energy

At 92% Completion, NLNG Train 7 Nears Pre-commissioning Phase

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The seventh gas liquefaction train of the Nigeria Liquefied Natural Gas (NLNG) Limited is on the verge of completion, having reached 92 percent of project stages.

The plant which aligns with existing trains at the company’s gas processing complex in Bonny Island, Rivers State, will propel Nigeria’s LNG production capacity with additional 8.0 million tons per annum (mtpa) from current 22 mtpa to 30 mpta upon completion.

Managing Director and Chief Executive Officer, NLNG, Adeleye Falade, made the revelation at a forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

According to him, the $7.0 billion project driven by Saipem, Chiyoda, Daewoo continues to enjoy broad support from the presidency and industry regulators.

In a presentation delivered on his behalf at the event, Falade stated that the project has so far consumed a significant 120 million man hours out of the target 200 million man hours of mostly indigenous labour.

He also declared that the company has enhanced all safety measures on the construction site after recording two lost time on injury (LTI) incidents. He assured that the project contractors are prioritizing workplace safety as the project drives to pre-commissioning stages.

Mr Falade, whose presentation was delivered by Train 7 Project Manager, Ali Uwais, also noted that the Train 7 project has helped galvanize local investment in steel fabrication and galvanizing capabilities, pointing at the 4000 tons of steel already deployed in the project.

He also pointed to the spur effect in the domestic cable manufacturing industry, stating that all cables used in the project are manufactured in Nigeria. He, however, added that additional interventions are required to close quality gaps in the local manufacturing industry.

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In noting the urgent need for in-country standard accountabilities, Mr Falade challenged agencies and regulators in the manufacturing industry to rise to the plate of ensuring international competitiveness on product quality.’

In counting some of the interventions driven by the company to close capacity and capability gaps in the domestic industry, he noted that the NLNG is relentless in establishing centers of excellence in tertiary institutions in the country with the purpose of addressing human capacity deficits.

The Train 7 project alone, he pointed out, has facilitated the training of 13,000 Nigerians, bolstered community focused participation initiatives, and facilitated rapid infrastructure development in the host Bonny Island.

Mr Falade told the industry audience at the event that the real value of the Train 7 project must transcend site activities to capture capacity, facilities and infrastructure developed for the project.

He called on other players in the industry to contribute to building capacity, standards and quality that compete globally, adding that Train 7 proves that Nigeria can grow and develop to global standards.

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