Savannah Petroleum PLC Addition of New Customer to Accugas (5035B)
January 31 2020 - 2:00AM
UK Regulatory
TIDMSAVP
RNS Number : 5035B
Savannah Petroleum PLC
31 January 2020
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:
+44 (0) 20 3817
Savannah Petroleum 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Sally Marshak, Communications
Sahara Group
Kola Adesina, GMD Sahara Power
Group
Godwin Emmanuel, CEO FIPL
Bethel Obioma, Head Corporate +234 (0) 802 764
Communications 5730
+44 (0) 20 7409
Strand Hanson (Nominated Adviser) 3494
Rory Murphy
James Spinney
Ritchie Balmer
+44 (0) 20 7878
Mirabaud (Joint Broker) 3362
Peter Krens
Ed Haig-Thomas
+44 (0) 20 7260
Numis Securities (Joint Broker) 1000
John Prior
Emily Morris
Alamgir Ahmed
Jefferies International Limited +44 (0) 20 7029
(Joint Broker) 8000
Tony White
Will Soutar
+44 (0) 20 8434
Celicourt Communications 2754
Mark Antelme
Jimmy Lea
Ollie Mills
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").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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