Savannah Energy plans to double production after SIPEC acquisition
Savannah Energy Plc, a British independent energy company, is planning to increase production from the Stubb Creek oil and gas field after the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC).
It said this on Friday in a statement announcing its audited results for the year ended 31 December 2023.
The company had signed agreements in March 2024 to acquire 100% of SIPEC, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field.
“Plans are also in place to double production to approximately 4.7 Kbopd within 12 months following completion of the acquisition through the implementation of a de-bottlenecking programme,” it said.
The results show that its average gross daily production was 23,600 barrels of oil equivalent per day (boepd), broadly in line with FY 2022 production on a like-for-like basis when adjusted for a planned maintenance programme.
Its total revenues stood at $260.9 million, up 11% compared to its previously issued guidance of more than $235 million.
It said gas was sold to nine customers in Nigeria, with a number of new and extended sales agreements signed, totalling up to 101 MMscfpd, with an average realised sales price of $4.51/Mscfe, representing an over 9% increase on the previous year’s average realised price of $4.14/Mscfe.
“2023 clearly demonstrated the robustness of our business model, corporate capacity and corporate infrastructure. Our core business continued to perform strongly, while we have progressed our projects in Niger during a period of political change, progressed two separate hydrocarbon acquisitions which are material to our business, continued to grow our renewable energy business, managed the impact of the nationalisation of our Chad Assets to ensure that we receive the value we are due and positioned ourselves strongly to announce further new and exciting projects in 2024,” Andrew Knott, CEO of Savannah Energy, said.
