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British company set to acquire more Nigerian oil & gas firms

 Savannah Petroleum Plc has disclosed its intention to acquire more Nigerian companies in the coming years to expand its footprint in Nigeria.

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British company set to acquire more Nigerian oil & gas firms

Months after acquiring a Nigerian oil and gas exploration, British firm, Savannah Petroleum Plc has disclosed its intention to acquire more Nigerian companies in the coming years to expand its footprint in Nigeria and Africa.

Andrew Knott, the Chief Executive of Savannah Petroleum said the acquisition of Seven Energy International Limited is just a tip of the plans the British firm has for the Nigerian business environment. He was reported to have stated that Savannah Petroleum was still eyeing some assets.

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Andrew Knott, Savannah Petroleum

Going after ‘not so attractive firms’: Savannah Petroleum plans to go for assets that other companies do not see much value in. “We will look at things opportunistically,” Knott said, adding that, “Seven Energy should be viewed as a starting kit.” 

It has already been widely reported that international oil companies like Chevron and ExxonMobil are looking to sell off their Nigerian stakes to focus on projects at other markets, and the possibility of Savannah Petroleum tapping into the assets has not been written off.

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Savannah Petroleum plan for Nigeria: Speaking on the company’s operational plan for the Nigerian market, Knott said expanding its base of Nigerian industrial customers, including factories and power plants was on Savannah Petroleum’s radar. This is because only about 50% of the capacity of gas infrastructure purchase is being used in the country.

[READ MORE: Paga acquires Ethiopian-based startup, Apposit, announces other subsidiaries)

Knott, who made this known on the sidelines of the Africa Investment Summit in London, said already, 10% of Nigeria’s power is provided by Savannah Petroleum. In differentiating the company’s gas supply, Knott said the supply of gas to power stations and industrial customers is cheaper than the use of diesel, which is roughly $15, while gas usage is about $3.50 per thousand cubic feet.

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But despite the drive for the usage of gas to power stations and industrial customers in Nigeria, Savannah Petroleum also has oil assets in Niger, another West African country. There, Savannah Petroleum controls about 50% of the oil-prolific Agadem Rift Basin. Speaking on both portfolios in Nigeria and Niger, Knott said both assets provide growth opportunities. “Both base businesses have very good organic growth opportunities.”

Why this matters? Nigeria has been having power or electricity problem for decades now despite being the largest economy in Nigeria. The power supply issue had led to the privatisation of the power sector in 2013 and the supply of the electricity was divided into several categories: six generation companies; 12 distribution companies covering all 36 Nigerian states, and a national power transmission company.

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Despite the privatisation, the power outages still remain, with government and the private electricity company trading blame on the reason for the deplorable power supply. The struggle to have stable power supply has led to the rise of energy companies, both gas and solar operators proffering their products and service as the solution.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: fakoyejo.olalekan@nairametrics.com.

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Business News

Global oil market to re-balance in 2 months’ time

In the meantime, OPEC+ wants to keep the existing production output cuts beyond the June expiry date as part of efforts to rebalance the market. Countries like Saudi Arabia, the United Arab Emirates (UAE) and Iraq, have all reaffirmed their commitment to this effect.

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Crude oil prices, bonny light

With the uncertainty that still prevails in the global oil market due to the prevailing coronavirus pandemic, analysts have been coming up with different forecasts on the future of the market. The latest forecast is that the market will most likely recover by July 2020.

Crude oil prices and oil demand plunged over the past few months as a result of the pandemic. However, with the lifting of global lockdowns and gradual reopening of global economies, oil prices are expected to rebound. Russia’s energy minister, Alexander Novak, said the global oil supply and the oil demand will most likely rebalance by July.

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In the meantime, OPEC+ wants to keep the existing production output cuts beyond the June expiry date as part of efforts to rebalance the market. Countries like Saudi Arabia, the United Arab Emirates (UAE) and Iraq, have all reaffirmed their commitment to this effect.

In his analysis earlier today, OPEC’s Secretary-General, Mohammed Barkindo, urged OPEC+ members not to flout the output cut. According to him, OPEC+ members must remain committed to production cuts despite signs that oil demand is beginning to recover.

(READ MORE: Oil price gains likely to halt over demand uncertainty, as US-China tension intensifies)

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Global oil market to rebalance in 2 months’ time

On its part, Russia had agreed to cut down its oil production to 8.5 million barrels of crude per day in May and June, down from 10.5 million barrels.  There is a possibility that the country could extend the current level of output cut beyond June, a situation that is expected to serve as a major boost in the rebalancing of the oil market.

Last week, the International Energy Agency (IEA) said that it had seen signs that the oil market would rebalance quicker than originally expected after the United States and OPEC implemented the agreed output cut. The development came as a big relief to Nigeria because the rebound of oil prices and the rebalancing forecast will help reduce the country’s fiscal pressure and boost its revenue.

Note that the Brent crude and Bonny light crude sold for about $36 per barrel and over $33 per barrel respectively. These are above the revised budget oil benchmark of $25 per barrel for the 2020 budget.

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LIRS further extends deadline for filing annual tax returns by one month

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.” – Ayodele Subair

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LIRS further extends deadline for filing annual return by one month

The Lagos State Internal Revenue Service (LIRS) has again extended the deadline for filing of Annual Tax Returns from May 31 2020 to June 30, 2020.

This is part of the state government’s effort to provide relief to taxpayers in light of the economic impact of the Covid-19 pandemic. With this development, annual returns for individuals, both employees and self-employed persons, can be filed anytime before June 30, 2020.

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In a press release signed by Monsurat Amasa, the head of LIRS’ Corporate Communications Department, the agency urged taxpayers to take advantage of the magnanimity of the government and file their returns. The LIRS’ Executive Chairman, Mr. Ayodele Subair, explained the extension thus:

“As the Lagos State Government keeps abreast of global best practices in containing the Covid-19 pandemic and eases the effects of an economic downturn on taxpayers and residents of the State, LIRS had initially extended the deadline for filing annual tax returns for two months, from the statutory March 31st of every fiscal year to May 31, 2020.  

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.”

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(READ MORE: COVID-19: Lagos issues new guidelines, considers full reopening of economy)

He further explained that taxpayers can file the annual returns from the comfort of their homes and offices using the LIRS eTax platforms. They can also generate assessment and payment schedule, and other tax administration matters on the same platform. Updates on business operations and alternative payment platforms are to be found on the verified handles, and the LIRS website.

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Podcast: How Covid-19 has birthed a new, vibrant digital economy

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Does Nigeria have a debt problem?, EMM podcasts

Join Adetayo Adesola, Lawretta Egba and Emmanuel Abara as they dicuss what sectors and industries will succeed and fail in a covid-19 world.

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