Savannah Announces 23,600bpd Oil Production, $260.9m Earnings

Savannah Energy Plc, a British independent energy company operating in Nigeria has announced its performance for last year, with its production total revenues as at December 31 2023 standing at $260.9 million, 11 per cent ahead of previously issued guidance of greater than $235 million.

The company, which focused on delivery of its Projects that Matter, also indicated in its audited results for the year ended 31 December 2023 that its average gross daily production was 23,600 barrels per day (bpd).

In a statement, the operator said this was broadly in line with the full year (FY) 2022 production on a like-for-like basis when adjusted for a planned maintenance programme.

Likewise, Savannah informed that its operating and administrative expenses for the year came to $68.8 million, 8 per cent below previous guidance of up to $75 million, with its capital expenditure at $13 million, well below the previously issued guidance of up to $30 million.

The company also maintained its strong safety record in 2023, with a zero Lost Time Injury (LTI) rate.

The report further showed a continued increase in customer diversification in Nigeria with gas sold to nine customers, and a number of new and extended sales agreements signed, totalling up to 101 million standard cubic feet per day (MMscfpd).

It said the performance also included an average realised sales price of $4.51/Mscfe, representing an over 9 per cent increase on the previous year’s average realised price of $4.14/Mscfe.

However, during the FY 2023, the company signed an agreement with Amalgamated Oil Company Nigeria Limited to purchase up to 20 MMscfpd of gas over the course of the next 10 years for onward sale to its gas customers, providing a commercial route to market for third-party stranded gas resources via its c. 260km pipeline network.