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Monday, December 24, 2018
Savannah Petroleum saw the amendments to its Seven Energy transaction. The amendments grant control of Accugas to Savannah. According to Savannah CEO Andrew Knott, the control of Accugas in Nigeria in aggregate are “demonstrably NPV and cashflow accretive.”
Knott went on to say that it represents the release of a significant amount of cash to the company and “significantly increases the upside exposure of our South East Nigerian gas business to rising gas volumes and prices.”
The planned addition of the Alaoji power station as a new customer to the Accugas business (alongside other new customer discussions which are ongoing) diversifies the near-term customer mix while also serving as the start of the roadmap that Savannah is seeking to establish to enable a third train to be built at the Accugas Central Processing Facility.
“I would like to take the time to thank the Seven Energy creditor group, AIIM, and our shareholders for their continued support which has enabled us to progress this transformational acquisition. I would also like to thank both the Savannah and Seven Energy teams for their tireless work this year. We look forward with excitement to 2019 as we seek to consolidate and grow the South East Nigerian gas business and further develop and explore our high-value acreage in Niger,” Knott said in a statement.
Sola Lawson, Investment Director West Africa, African Infrastructure Investment Managers, said, “AIIM is pleased to partner with Savannah in this new transaction structure which aligns our two companies’ interests in the acquisition. We see great potential in the growth of the domestic natural gas market in Nigeria, and believe this transaction is a unique and exciting opportunity.”
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