After Seven Energy, Savannah Petroleum Plans New Acquisitions In Nigeria
Savannah Petroleum, which acquired Nigerian oil and gas company Seven Energy International last November said it’s planning other acquisitions in the West African nation’s oil and gas sector.
The company listed on the London Stock Exchange (LSE) said its acquisition of Nigeria’s Seven Energy, Sub-Saharan Africa’s largest gas infrastructure and transportation network in November was its starting kit for further expansion.
The company, according to its chief executive, Andrew Knott said would look at other assets that were no longer material for bigger players.
Some oil majors in the country, the likes of Chevron and ExxonMobil are seeking to sell certain Nigerian stakes as they focus on projects elsewhere.
“We will look at things opportunistically,” Knott said, adding that “Seven Energy should be viewed as a starting kit.”
Knott, who spoke on the sidelines of the first Africa Investment Summit in London, said the company’s focus would expand its industrial customer base in the country, such as factories and power plants.
He said only about 50 percent of the capacity of its gas infrastructure purchase is being used. He said the company was already providing 10 percent of Nigeria’s power sector gas needs.
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, would help to clean up the energy sector.
Savannah also has oil assets in Niger, where it has control of roughly 50 percent of the oil-prolific Agadem Rift Basin.
“Both base businesses have very good organic growth opportunities,” Knott said, referring to Niger and Nigeria.