Savannah Petroleum PLC Signature of Niger-Benin Export Pipeline (3637M)
16 September 2019 - 4:01PM
UK Regulatory
TIDMSAVP
RNS Number : 3637M
Savannah Petroleum PLC
16 September 2019
16 September 2019
Savannah Petroleum PLC
("Savannah" or "the Company")
Signature of Niger-Benin Export Pipeline Transportation
Convention
Sanction of Agadem Rift Basin crude oil export solution
Savannah Petroleum PLC, the British independent oil & gas
company focused around activities in Niger and Nigeria, is pleased
to note the signature on 15 September 2019 of a Transportation
Convention between China National Petroleum Corporation ("CNPC")
and the Republic of Niger in relation to the planned crude oil
export pipeline from the Agadem Rift Basin ("ARB") to the Atlantic
coast in Benin (the "Niger-Benin Export Pipeline" or the
"Pipeline"). The Pipeline is expected to run for c.2,000km from the
ARB in Niger to Port Seme on the Atlantic coast in Benin, and is
CNPC's largest ever cross-border crude oil pipeline investment.
The Transportation Convention sets out the contractual terms
between CNPC and the Republic of Niger under which the Pipeline
will be constructed and operated and was signed by Niger's Minister
of Petroleum, His Excellency Mr. Foumakoye Gado and the President
of CNPC Exploration and Development Company (CNPC's overseas
development arm, "CNODC") Mr. Wang Zhong Cai. Savannah and various
other project stakeholders and dignitaries were also in attendance
at the signature ceremony. Mr. Wang Zhong Cai confirmed that
Pipeline construction is expected to be complete by the end of
2021.
Following the signature of the Transportation Convention, His
Excellency President Mahamadou Issoufou of Niger is expected to
officially launch the surface infrastructure works for the
Niger-Benin Export Pipeline at a ceremony in Koulele, Agadem on 17
September 2019. The Transportation Convention follows the signature
in August 2019 of the Niger-Benin Pipeline Construction and
Operation Agreement between CNPC and the Republic of Benin, as well
as the upstream approval granted by the Republic of Niger to CNPC
in June 2018 in relation to the Agadem Production Sharing Contract
("PSC") Exclusive Exploitation Area 3, the production from which is
expected to be exported from Niger using the Pipeline. Under the
terms of Savannah's R1/R2 and R3/R4 PSCs, the Petroleum Code of
Niger and its Implementing Decree, Savannah is entitled to access
such third-party infrastructure.
Andrew Knott, CEO of Savannah Petroleum, said:
"The Niger-Benin Export Pipeline is expected to transform Niger
into a major regional oil producer and deliver a material increase
in the country's economic growth rate. From a Savannah perspective,
it provides our Company with a significant additional potential
route to market, alongside the existing Zinder refinery, for our
existing and future discoveries in Niger.
As a Company we would like to congratulate Niger's Ministry of
Energy and Petroleum, CNPC and all of the stakeholders who have
worked to deliver this key project and we look forward to the
planned 2021 first oil export date with great anticipation."
For further information contact:
Savannah Petroleum +44 (0) 20 3817 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Jessica Ross, VP Corporate Affairs
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy
James Spinney
Ritchie Balmer
Mirabaud (Joint Broker) +44 (0) 20 7878 3362
Peter Krens
Ed Haig-Thomas
Jefferies International Limited (Joint
Broker) +44 (0) 20 7029 8000
Tony White
Will Soutar
Numis Securities (Joint Broker) +44 (0) 20 7260 1000
John Prior
Emily Morris
Alamgir Ahmed
Celicourt Communications +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
Ollie Mills
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with
exploration and production assets in Niger and Nigeria. Savannah's
flagship assets include the R1/R2 and R3/R4 PSCs, which cover c.50%
of the highly prospective Agadem Rift Basin ("ARB") of South East
Niger, acquired in 2014/15. The Company is in the process of
acquiring interests in the cash flow generative Uquo and Stubb
Creek oil and gas fields and an interest in the Accugas midstream
business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on
the Company's website:
http://www.savannah-petroleum.com/en/index.php
About the Agadem Rift Basin
The Agadem Rift Basin is located in South East Niger and covers
an area of approximately 30,000 km(2)
in size. In the modern era, China National Petroleum Corporation
("CNPC") has made 110 discoveries from 137 exploration wells with
the principal discovered geological play being a relatively shallow
Eocene Sokor Alternances tilted fault light oil block play. The
basin has been in production since 2011 following a first phase of
development of the Agadem PSC area (which is adjacent to Savannah
permit areas) by a CNPC-led joint venture. Despite the high success
rate seen in the ARB to date, Savannah believes the basin to have
been relatively lightly explored, both in terms of overall activity
levels and stratigraphic horizons which have been targeted.
Further exploration activity in the basin is aided by the very
large geological dataset managed by the
Niger's Ministry of Energy & Petroleum which comprises
c.13,000 km(2) of modern 3D seismic, c.30,000
km of 2D seismic and over 200 well data suites.
About Savannah's ARB Project
Savannah's Niger project consists of two PSC areas (R1/R2 and
R3/R4) which together cover an area
of 13,655 km(2) . Across these permit areas, Savannah has mapped
146 un-drilled exploration prospects
and leads.
Following an extensive period of geological data acquisition and
evaluation, Savannah commenced a
five well drilling program with the spud of the Bushiya-1 well
in March 2018. The focus of the program was the R3 East area of the
R3/R4 PSC, and all five wells drilled by the Company as part of
this campaign resulted in light oil discoveries. Savannah has
announced its intention to test one or more of the R3 East
discoveries as part of its plans to develop an early production
scheme using crude oil resources associated with these
discoveries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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