Savannah Energy has announced the commissioning of a new gas compression system, valued at $45 million, at its Uquo Central Processing Facility (CPF) in Akwa Ibom State.
The UK-based energy firm, which is a major player in Nigeria’s domestic gas market, disclosed this on Wednesday in a press release issued on its verified LinkedIn handle seen by Energy in Africa.
Savannah says the project was delivered safely and will allow it to maximise production from both existing and future gas wells, ensuring a reliable energy supply of gas for their customers in the domestic market.
Also, it said the project, which forms part of the two significant operational achievements in the first seven months of 2025, was implemented using approximately 90% of the original budgeted cost of $45 million.
Savannah Energy operates its gas business in Nigeria through its subsidiary Accugas. It operates mainly from Uquo in Akwa Ibom State.
The state also hosts the operational base of Seplat Energy Plc, another major domestic player that currently supplies about 30% of Nigeria’s gas.
According to its latest operational and financial update, Savannah also recorded key gains during the period under review
“I am pleased to provide a trading update for the first seven months of 2025, highlighting total revenues of $147.3 million and good progress in our core objectives for the year, including a 37% increase in cash collections year-on-year, with almost $220 million collected in the year to date, and a 12% improvement in the trade receivables balance compared to year-end 2024”, Andrew Knott, CEO of Savannah Energy, stated.
What you should know
In 2019, Savannah acquired an 80% stake in Accugas as part of its takeover of Seven Energy, following an economic downturn that hit many oil companies in Nigeria in 2017.
The company operates a 200 mmcf/d processing facility and a 260km pipeline network, supplying a number of Nigeria’s thermal power plants like the 560MW Calabar NIPP and the 150MW Ibom Power Plant.
Accugas is said to support over 20% of Nigeria’s power plants.
Besides Savannah, the African Infrastructure Investment Managers (AIIM) also holds a 20% equity stake in the company.
In the past 7 months, Savannah has also said it has shown improvement in its current daily gross production.
“Our Stubb Creek asset continues to perform well, with current daily production of 3.2 Kbopd, up 20% on the average level for 2024. We continue to target further increases in Stubb Creek production as we progress the planned expansion programme there,” Knott said.
The company attributed this increment to both the completion of the 100% acquisition of Sinopec’s assets in Nigeria in March 2025 as well as an ongoing 18-month expansion programme.
Furthermore, Savannah has signed a turnkey drilling contract for up to two wells on the Uquo Field in Nigeria, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of that quarter.
“Uquo NE is forecast to provide gas volumes of up to 80 MMscf/d, which may be followed by the drilling of an exploration well, Uquo South, targeting an Unrisked Gross GIIP of 131 Bcf of incremental prospective gas resources,” the CEO said.
