The one-paragraph statement by the firm announcing the termination was signed by Okwudili Onyia, its Communications Manager.
Browsing: Savannah Energy
The disclosure was made in a statement personally signed by the oil giant CEO, Andrew Knott.
As previously announced in April 2022, Savannah executed an addendum to its gas sales agreement with FIPL, allowing FIPL to increase the quantity of gas purchased to up to 65 MMscfpd (from 35 MMscfpd) to allow supply to both its Trans Amadi and Eleme power plants (as well as its Afam power plant). FIPL is an affiliate company of the Sahara Group, a leading international energy and infrastructure conglomerate with operations in over 42 countries across Africa, the Middle East, Europe and Asia.
The Full Year total revenues increased to US$230.5m which was +7% higher than FY 2020 total revenues of US$215.9m. This is ahead of the Company’s previously issued FY 2021 guidance of ’Total Revenues of greater than US$205m’.
While the announcement by Lekoil Limited does not affect Lekoil Nigeria or her assets, Lekoil Nigeria considers the Savannah deal to be corrupt and unlawful, alleging that the deal as announced, is in contravention of applicable Nigerian law, given that prior Ministerial consent is required and this can only be achieved with the express consent of and facilitation by Lekoil Nigeria.
The Company now expects to reduce its Nigerian capital expenditures by 15 per cent over the 2020-23 period from approximately $118 million to $100 million.