British owned Savannah Petroleum is considering oil and gas acquisitions in Nigeria, for further expansion. The company concluded its purchase of Seven Energy International’s Nigerian gas assets, sub-saharan Africa’s largest gas infrastructure, and transportation network, in 2019.
According to Savannah Chief Executive Officer, Andrew Knott, the company will look at other assets that were no longer material for bigger players. Oil majors such as Chevron and ExxonMobil, are seeking to sell certain Nigerian stakes as they focus on projects elsewhere.
Andrew Knott made it known that the company will look things “opportunistically,” adding that “Seven Energy should be viewed as a starting kit”.
He was speaking on the sidelines of the Africa Investment Summit in London, where British Prime Minister Boris Johnson joined visiting African leaders, as Britain seeks to strengthen trade ties beyond Europe.
In the near term, Knott said the company’s focus was to expand its base of Nigerian industrial customers, such as factories, and power plants, as only about 50% of the capacity of its gas infrastructure purchase is being used. He said the company was already providing 10% of Nigeria’s power. Although Nigeria is Africa’s largest economy, it faces power outages that make it heavily reliant on diesel generators.
Knott said Savannah’s work to expand the supply of gas to power stations, and industrial customers, which at about $3.50 per thousand cubic feet, is cheaper than the roughly $15 for diesel, and will help to clean up the energy sector.
Apart from Nigeria, Savannah also has oil assets in Niger, a West African country where it has control of about 50% of the oil-prolific Agadem Rift Basin.
Knott stated further that businesses in both “countries have very good organic growth opportunities,” and potentials that will be tapped by the company.