L-R: Director, Project Certification and Authorization, Engr. Abayomi Bamidele, Director, Monitoring and Evaluation, NCDMB, Alhaji Abdulmalik Halilu; Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, Director, Capacity Building, NCDMB, Dr. Ama Ikuru and Director, Legal Services, Mr. Naboth Onyesoh, Esq in a group photograph after the Board’s breakfast meeting with media executives in Lagos on Monday.

The Nigerian Content Development and Monitoring Board (NCDMB) announced on Monday that it had eliminated middlemen from the oil and gas industry value chain and contributed to shortening the oil industry contracting cycle to six months, courtesy of the three Presidential Directives on Local Content operations issued by President Bola Tinubu in March 2024.

The Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe stated this in Lagos while speaking at a breakfast meeting with some media executives.

He confirmed that NCDMB had complied fully with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which sought to ensure that only local service companies that have domiciled proven capacities and capabilities can participate in oil and gas tenders.

He also indicated that NCDMB has reduced its touch points and fast-tracked projects approval processes, in compliance with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).

The Presidential Directives and the Board’s compliance are geared to attract new international and local investments, encourage speedy development of oil and gas projects and improve the Nigerian economy.

The Executive Secretary hinted on plans to launch a major initiative tagged “Back to the creeks.” This policy will take the impact and contribution of local content implementation to oil producing communities and other hinterlands across the country.

Responding to questions from journalists, the NCDMB boss dismissed insinuations that local content implementation increases the cost of producing crude oil in Nigeria.

He clarified that the major drivers of increased cost of crude oil production are downtime and disruptions in operations caused by community issues or technical problems.

Other challenges responsible for extraneous costs include the cost of providing security and the activities of briefcase contractors, he said.

On the Board’s strategies for enabling growth of the industry, Ogbe stated that NCDMB was working intently to create an enabling environment for international oil companies to take final investment decisions for new projects and was evolving policies to support indigenous oil and gas service companies.

Responding to a question on insurance, the NCDMB boss promised to revive the insurance services guidelines the Board signed in June 2022 with the National Insurance Commission (NIACOM), which would oblige the Nigerian oil and gas industry to patronise the local insurance sector.

He acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap depends largely on public communication, awareness and support from key oil and gas stakeholders.

He also appreciated the media for projecting the activities and programmes of the Board and assured that cooperation with the media would be deepened under his leadership as the Executive Secretary.

The General Manager, Corporate Communications and Zonal Co-ordination, Mr. Esueme Dan Kikile, indicated that the breakfast meeting was organised to introduce the Executive Secretary formally to leading media stakeholders.

Other senior management of NCDMB that attended the breakfast meeting included the Director Corporate Services and Capacity Building, Dr. Ama Ikuru; Director Monitoring and Evaluation, Mr. Abdulmalik Halilu; Director Projects Certification and Authorisation, Engr. Abayomi Bamidele and Director, Legal Services, Mr. Naboth Onyesoh, Esq.

In his comments, Director Corporate Services and Capacity Building, charged media stakeholders to report Nigeria in a positive light, to attract investments in the oil and gas sector.

The Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu gave an update on the performance of the Nigerian Content Intervention Fund (NCI Fund).

He rated the Fund’s performance as over 90 percent, judging by the percentage of access by qualified companies and repayment by the borrowers.

He equally hinted that the Executive Secretary had constituted a team to review the Community Contractors Fund, which is a poor performing product under the Nigerian Content Intervention Fund (NCI Fund). He expressed hope that an announcement would soon be made on the remodeling of that particular product, new partners and product papers.

The Director Projects Certification and Authorization, Engr. Abayomi Bamidele highlighted the increased number of projects approved by the Board since it started implementing the Presidential Directive on Local Content.

He added that the Board was equally supporting companies seeking to fast-track gas investments to take advantage of the Presidential Directive on Tax Incentives, Exemptions and Remissions for the Oil and Gas Companies

Also speaking, Director, Legal Services, Mr. Naboth Onyesoh commended the media for their support to the Board over the years, which increased the visibility and public awareness of the Board’s functions and achievements.

Host community members await further medical attention during the NNPC Limited/Seplat Joint (JV) “Eye Can See” medical outreach held in Ohaji/Egbema Community of Imo State recently.

The NNPC Limited/ Seplat Energy Joint Venture (JV) partnership has conducted a medical outreach, providing free eye health services to individuals with visual impairments in Ohaji/Egbema community of Imo State.

Through its “Eye Can See” programme, a Corporate Social Responsibility (CSR) initiative, the JV dispensed more than 10,000 reading glasses and successfully performed 639 eye surgeries, including cataract removals, for host community members who otherwise had limited access to such vital medical services.

The “Eye Can See” programme, which commenced in 2017, has been a beacon of hope in the eastern asset of the NNPC upstream investments, positively impacting over 20,000 people to date.

In his remarks during the event, Chief Upstream Investment Officer of NNPC’s Upstream Investment Management Services (NUIMS), Bala Wunti, represented by Dr. Obinna Otuu, Manager, JV Asset B emphasised the significance of the initiative to NNPC Limited’s corporate mission of enriching the lives of Nigerians.

Elaborating further on the broader vision behind the programme, Wunti stated that the NNPC Ltd takes pride in being more than just an energy provider. “We are a partner in progress, dedicated to making sustainable contributions to the communities that support us,” he added.

According to him, the “Eye Can See” initiative reflects “our belief that corporate structures can and should play a vital role in societal development.”

He noted that the programme goes beyond immediate medical care by educating individuals on lifestyle choices to prevent conditions like hypertension and diabetes, which can lead to permanent vision loss.

Expressing his appreciation for the support of the local government, beneficiaries, and NNPC Limited’s partners, Wunti observed that together with Seplat, the National Oil Company is paving the way for a brighter future where access to essential health services is possible for all.

“This project is not just about restoring vision; it is about giving people hope and the opportunity to lead fulfilling lives. This year’s outreach in Ohaji/Egbema is a testament to the ongoing commitment of NNPC and Seplat to improve the quality of life in their host communities,” he affirmed.

The “Eye Can See” initiative has had a profound impact on the communities it serves. By providing free eye screenings, surgeries, reading glasses, and health education, the programme has transformed lives and restored hope to many who had been suffering from visual impairments.

NNPC/Seplat JV remains dedicated to contributing meaningfully to Nigeria’s development through initiatives like the “Eye Can See” programme.

The partnership is committed to expanding the reach of its CSR programmes, ensuring that even more people across Nigeria can benefit from the life-changing services.

Executive Secretary, Engr. Felix Omatsola Ogbe, represented by Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu, and the Director Legal Services, Mr. Naboth Onyesoh, Esq, signed on NCDMB’s side, while the Executive Secretary/Chief Executive Officer of Petroleum Commission, Ghana, Mr. Egbert Fabille Jrn and the Acting General Counsel, Nana Akua Agyei signed on behalf of their organisation.

The Nigerian Content Development and Monitoring Board (NCDMB) has signed a Memorandum of Understanding (MoU) with the Petroleum Commission, Ghana (PCG) towards developing and deepening local content regulations in Ghana’s upstream petroleum sector.

The signing ceremony took place at the sidelines of the 2024 Annual Local Content Conference and Exhibition held at Takoradi, Ghana.

The MoU is valid for three years and it is centred on the desire to build synergies through information sharing and transfer of skills of mutual interest and benefits.

Under the MoU, NCDMB will offer PCG strategic advice and guidance in the areas of laws, frameworks, knowledge exchange, procedures for baseline study, data collection on capacities that exist in Ghana, design of strategic plan for local content implementation in Ghana and other capacity development initiatives.

The MoU would also foster collaboration, provide opportunity for global experience, and facilitate advancement of knowledge, leading to local content development in the upstream petroleum sector.

In addition, NCDMB will offer technical support in the development of the framework in the formulation of regulations and policies for PCG Local Content laws.

NCDMB was established in 2010 by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, and is mandated to monitor, guide, develop, and promote local content practice in the Nigerian oil and gas sector and linkage sectors.

On the other hand, the PCG was established by the Petroleum Commission Act, 2011 (Act 821) to regulate and manage the utilisation of petroleum resources and coordinate the policies in the upstream petroleum sector under the laws of the Republic of Ghana.

On NCDMB’s side, the MoU was signed by the Executive Secretary, Engr. Felix Omatsola Ogbe, represented by Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu, and the Director Legal Services, Mr. Naboth Onyesoh, Esq, while the Executive Secretary/Chief Executive Officer of Petroleum Commission, Ghana, Mr. Egbert Fabille Jrn and the Acting General Counsel, Nana Akua Agyei signed on behalf of their organisation.

NCDMB had signed a similar agreement with the Technical Secretary of the National Content Monitoring Committee of Senegal (ST-CNSCL) in February 2022.

The ST-CNSCL is the agency responsible for the co-ordination and supervision of the development and implementation of the local content strategies in the Senegalese oil and gas sector.

Speaking earlier at the conference in Ghana, the Executive Secretary NCDMB urged African oil and gas service companies to collaborate among themselves and leverage their unique capabilities and capabilities.

This approach would grow African local content sustainably and help meet the aspirations of the African Continental Free Trade Area (AfCFTA), he noted.

He expressed delight at the collaborative spirit displayed by African countries, noting that “this event is a testament to our unwavering commitment to fostering strategic partnerships and driving sustainable growth within our sector.”

Commenting on the theme of the conference, which is “Attracting E&P Investments to Boost Local Content: New Pathways,” the Executive Secretary underscored the necessity for innovative approaches and collaborative efforts to unlock Africa’s hydrocarbon resources, estimated at over 125 billion barrels, accounting for about 10% of global reserves.

He reiterated the role of NCDMB as a business enabler, supporting the development of an efficient indigenous supply chain and delivering quality service competitively in the oil and gas industry.

Reflecting on NCDMB’s achievements, Engr. Ogbe noted significant progress in local content development, with an increase from less than 5% in 2010 to 54% in 2023, attributing the growth to the robust NOGICD Act, strategic implementation by the Board and collaboration by industry stakeholders.

He further highlighted the importance of economies of scale in attracting new investments and optimising capacity utilisation in the Exploration and Production (E&P) value chain.

He also celebrated the establishment of the African Energy Bank by the African Petroleum Producers Organisation (APPO) and the African Export–Import Bank.

The bank is expected to fund major oil and gas projects across the continent, mitigating the reluctance of western financial institutions to support new investments in the sector.

Savannah Energy Plc, the British independent energy company focused around the delivery of Projects that Matter, is pleased to announce its unaudited half-year results for the six months ended 30 June 2024.

The H1 2024 Unaudited Results showed a strong financial performance, with the company’s total income increasing by 40% to US$233.4 million, compared to US$167.6 million in H1 2023. This comprises total revenues of US$123.5 million and other operating income of US$109.9 million.

Its operating profit also stood at US$152.3 million, 130% higher than H1 2023 (US$66.2 million), with adjusted EBITDA of US$91.6 million, compared to US$108.2 million in H1 2023. This excludes other operating income which when included shows a 47% increase year-on-year to US$201.5 million, compared to US$137.1 million in H1 2023.

The report also shows that the company’s operating expenses plus administrative expenses came up to US$75 million, and capital expenditure of up to US$50 million.

In terms of operations, its average gross daily production in Nigeria for the period stood at 24.4 Kboepd, representing an increase of 3% compared to FY 2023 (23.6 Kboepd).

The report also shows that company’s renewable energy projects in motion at period-end rose to 696 MW.

A strong believer in Africa’s transition to renewable energy, Savannah which aims to become one of the largest renewable energy development companies in Africa over the next two years with a rapidly growing pipeline of solar, wind, and hydro power projects is targeting a portfolio of up to 1 GW+ of renewable energy projects in motion by end 2024 and up to 2 GW+ by end 2026.

Andrew Knott, CEO of Savannah Energy, said:

“I am pleased to report our results for the first six months of 2024, as well as the wider progress we are making developing our business. Key highlights in H1 included the delivery of US$233m of Total Income1 and the announcement of our planned acquisition of SINOPEC’s upstream assets in Nigeria. Alongside this, we are pleased to report strong progress in the development of our renewable energy business, particularly relating to our planned projects in Niger and Cameroon. Looking forward we expect to make a series of announcements around our entry into further renewable energy projects prior to year-end. We remain unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND renewable energy sectors.”

Financial Review

The table below provides an overview of our results for H1 2024 with a comparison for H1 2023:

Financial highlights

* The prior year comparative has been restated to conform with the presentation of “other operating income” in the 2023 annual report

Nigeria

During 2024 YTD, Savannah’s subsidiary, Accugas Limited agreed and extended three gas contracts for a total of up to 105 MMscfpd. These include the extension of the agreement with First Independent Power Limited (FIPL) in January 2024 for an additional 12-month period, whereby Accugas is supplying FIPL’s FIPL Afam, Eleme and Trans Amadi power stations with up to 65 MMscfpd of gas; a new 24-month agreement signed in July 2024 with Ibom Power Company Limited, owner of the Ibom power station, to supply up to 30 MMscfpd of gas, following the expiration of the previous 10-year agreement; extension of the agreement with Central Horizon Gas Company Limited (CHGC) was signed in August 2024 for an additional 12-month period, whereby Accugas is supplying CHGC with up to 10 MMscfpd of gas.

The company also continues to make progress on the US$45 million compression project at the Uquo Central Processing Facility (CPF), and project remains on budget and on track to be completed during 2024.

The company is also currently working on a proposed further development programme for the Uquo field which is expected to see additional wells drilled in 2025 and 2026.

SIPEC Acquisition

In March 2024, Savannah announced the proposed acquisition (via two separate transactions) of 100% of SIPEC for a total consideration of US$61.5 million.

SIPEC’s principal asset is the 49% non-operated interest in Stubb Creek. A subsidiary of Savannah, Universal Energy Resources Limited, is the 51% owner and operator. The company expects this to be completed in Q4 2024.

The transaction consideration is expected to be funded through a new senior debt facility arranged by Standard Bank of South Africa Limited and the existing cash resources of the company.

As at year end 2023, SIPEC had an estimated 8.1 MMstb of 2P oil reserves and 227 Bscf of 2C Contingent gas resources. Savannah’s Reserve and Resource base is expected to increase by approximately 46 MMboe following completion of the SIPEC Acquisition. SIPEC oil production is estimated at an average of 1.4 Kbopd for 2024.

Following completion of the SIPEC Acquisition, Savannah plans to implement a de-bottlenecking programme at the Stubb Creek processing facilities. It is anticipated that within 12 months of completion of the acquisition, this will lead to Stubb Creek gross production increasing by 135% to approximately 4.7 Kbopd.

Importantly, the SIPEC Acquisition also secures significant additional feedstock gas available for sale to its Accugas subsidiary, underpinning Savannah’s long-term ambition to be the gas supplier of choice in Nigeria.

Niger

Savannah remains committed to the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger. The Niger-Benin oil export pipeline, now fully operational, provides a clear route to international markets for crude oil produced from our R1234 contract area.

The company continues to progress its planned four well testing programme and are in the process of mobilising the required long lead item equipment into country.

Located in the Tahoua Region of southern Niger, Savannah’s Parc Eolien de la Tarka wind farm project is anticipated to be the country’s first wind farm and the largest in West Africa, with a total power generation capacity of up to 250 MW.

Savannah has signed agreements with two leading international Development Finance Institutions (the International Finance Corporation, the private sector arm of the World Bank, and the US International Development Finance Corporation, the U.S. government’s development finance institution) to fund approximately two-thirds of the pre-construction development costs of the project.

The project made significant progress in H1 2024 with all key studies now either complete or at an advanced stage. It submitted its Environmental and Social Impact Assessment (ESIA) scoping report to the Government of Niger and has continued to progress the ongoing ESIA field work additional studies required for the submission of the full ESIA report, expected in 2025.

As part of the ESIA studies, Savannah is currently performing a land survey of the wind farm area. The company has partnered with the Department of Geography of the Abdou Moumouni University of Niamey, where it has enabled a cartography and software training programme for a cohort of its students, before deploying them under supervision on the Tarka site. This has provided local students with a material and exciting learning experience, while involving them in a transformational energy project for their country.

In August 2024, it hosted a site visit for Niger’s Minister of Energy where it provided the Minister, Governor of Tahoua, local officials and community representatives with a presentation on the project and a tour of the wind farm site, detailing it plans for the project and outlining its transformative potential for Niger and its people.

The Minister confirmed that the Parc Eolien de la Tarka wind farm project is on the Ministry of Energy’s list of priority projects.

Parc Eolien de la Tarka is expected to produce up to 800 GWh of electricity per year, representing approximately 22% of Niger’s annual electricity demand, based on the country’s projected energy demand in 2026.

The construction phase is expected to create over 500 jobs, while the project has the potential to reduce the cost of electricity for Nigeriens and avoid an estimated 450,000 tonnes of CO2 emissions annually.

Savannah also continues to progress the two photovoltaic solar power plants expected to be located within 20 km of the cities of Maradi and Zinder.

In H1 2024, it presented the preliminary commercial and technical proposals to the Government of Niger. A sanctioning decision on these projects is expected in 2025, with first power in 2027.

Cameroon

Substantial progress has been made on the Bini a Warak Hybrid Hydroelectric and Solar Project in Cameroon, following the approval of the optimisation and proposed redesign of the project given by the Minister of Water and Energy.

The redesigned project, involving the construction of a hydroelectric dam on the Bini River in the northern Adamawa region of Cameroon, now incorporates photovoltaic solar, raising its installed power generation capacity from up to 75 MW to up to 95 MW.

Savannah continues to progress the project towards an anticipated project sanction in 2026, with first power targeted in the 2028 to 2029 window.

South Sudan

Savannah remains in active discussions regarding a potential transaction in South Sudan. A further update is expected to be made in early November.

Chad Arbitration Update

As previously disclosed in Savannah’s 2023 Annual Report, Savannah Chad Inc, has commenced arbitral proceedings against the Government of the Republic of Chad and its instrumentalities in response to the March 2023 nationalisation of SCI’s rights in the Doba fields in Chad, and other breaches of SCI’s rights. Its other wholly owned subsidiary, Savannah Midstream Investment Limited, has commenced arbitral proceedings in relation to the nationalisation of its investment in Tchad Oil Transportation Company, the Chadian company which owns and operates the section of the Chad-Cameroon pipeline located in Chad. SMIL has also commenced arbitral and other legal proceedings for breaches of SMIL’s rights in relation to Cameroon Oil Transportation Company (COTCo), the Cameroon company which owns and operates the section of the Chad-Cameroon pipeline located in Cameroon.

Savannah expects the arbitral proceedings to be concluded in the second half of 2025. SCI and SMIL are claiming in excess of US$840 million for the nationalisation of their rights and assets in Chad, and SMIL has a claim valued at approximately US$380 million for breaches of its rights in relation to COTCo. Whilst the Government of the Republic of Chad has acknowledged SCI’s and SMIL’s right to compensation, no compensation has been paid or announced by the Government of the Republic of Chad to date.

Savannah remains ready and willing to discuss with the Government of the Republic of Chad an amicable solution to the disputes. However, in the absence of such discussions, the Group intends to vigorously pursue its rights in the arbitrations.

Sustainability

Savannah published its Task Force on Climate-Related Financial Disclosures 2023 disclosure report and its maiden disclosure report in accordance with its chosen 13 United Nations Sustainable Development Goals in June 2024. It continues to progress its 2024 sustainability performance measurement and reporting in line with its sustainability strategy.