Savannah

Savannah Energy Profile and Projects

Company Overview: Savannah Energy PLC is a British independent energy company focused on delivering projects that make a significant impact, particularly in Africa. The company is committed to sustainable energy and socioeconomic development in the regions it operates in.

Operations and Assets

Chad and Cameroon:

• Savannah Energy acquired ExxonMobil's entire upstream and midstream asset portfolio in Chad and Cameroon in December 2022 for $407 million. This acquisition includes:
  • A 40% interest in the Doba Oil Project in southern Chad, encompassing fields such as Miandoum, Bolobo, Kome, Moundouli, Nya, Maikeri, and Timbre.
  • A 40% indirect interest in the Chad-Cameroon export transportation system, which includes a 1,081km pipeline and the Kome Kribi 1 Floating Production Storage and Offloading facility offshore Cameroon.
• The combined estimated reserve base of the fields in Chad is approximately 142.3 million barrels, with the Doba oil project expected to produce up to 28,000 barrels per day (bpd) in 2022. The Chad-Cameroon pipeline has a nameplate capacity of 250,000 bpd and an estimated throughput of 124,000 bpd from over 15 fields.

Nigeria:

• Savannah Energy has a significant controlling interest in a large-scale integrated gas production and distribution business in Nigeria, supplying gas to approximately 20% of Nigeria’s thermal power generation capacity.
• The company is also planning to acquire SINOPEC's upstream assets in Nigeria through the acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC) for $61.5 million, aiming to more than double oil production to approximately 4.7 Kbopd within 12 months of completion.

Niger:

• In Niger, Savannah Energy holds licence interests covering 50% of the country’s main petroleum basin. The company plans to deliver first oil production and revenues following the installation of an early production system.
• Additionally, Savannah is progressing up to 450 MW of solar and wind projects in Niger.

Renewable Energy Division:

• Savannah Energy has a robust renewable energy division with up to 696 MW of renewable energy projects in motion as of mid-2024. The company targets a portfolio of up to 1 GW+ of renewable energy projects by the end of 2024 and up to 2 GW+ by the end of 2026.
• Specific projects include the Bini a Warak hybrid hydroelectric and solar project in Cameroon.

Financial and Operational Metrics

Production and Throughput:

• Post-acquisition, Savannah Energy's upstream production is forecasted to be around 38.6 Kboepd (thousand barrels of oil equivalent per day), a significant increase from the pre-acquisition level of 16.0 Kboepd.
• Midstream throughput is expected to be around 112.3 Kboepd, a substantial increase from the pre-acquisition level of 15.4 Kboepd.

Financial Performance:

• For the first half of 2024, Savannah Energy reported:
  • Total Income of $233.4 million, a 40% increase from the first half of 2023.
  • Operating profit of $152.3 million, a 130% increase from the first half of 2023.
  • Adjusted EBITDA of $91.6 million, excluding Other operating income which showed a 47% increase year-on-year to $201.5 million.

Reserves and Resources:

• The company has net 2P Reserves and 2C Resources of 157.6 MMboe, equating to a 25.8-year reserve life.

Projects and Initiatives

Projects that Matter:

• Savannah Energy's "Projects that Matter" initiative aims to deliver sustainable energy and socioeconomic development in the countries it operates in, including Chad, Cameroon, Niger, and Nigeria. This includes investments in both hydrocarbon and renewable energy sectors.

Renewable Energy Projects:

• The company is actively developing several renewable energy projects across Africa, including solar and wind projects in Niger and the Bini a Warak hybrid hydroelectric and solar project in Cameroon.

Infrastructure Investments:

• In Nigeria, Savannah Energy is undertaking a $45 million compression project to maintain and grow gas production levels. The company has also signed a naira denominated debt facility with a consortium of five Nigerian banks to repay existing debt.

Sustainability and ESG

• Sustainability is a core aspect of Savannah Energy's operations, with the company aligned with 13 specific UN Sustainable Development Goals.
• The company's sustainability approach is underpinned by four key pillars linked to various metrics that are measured across the business.

Legal and Governance Issues

• In Cameroon, Savannah Energy's subsidiary, Savannah Midstream Investment Limited (SMIL), is involved in legal proceedings against the Republic of Chad, SHT Overseas Petroleum (Cameroon) Limited, and other shareholders of the Cameroon Oil Transformation Company (COTCo) due to actions in breach of SMIL’s rights under the Articles of Association of COTCo and the Services Agreement.