By:Ecofinagency

Savannah Energy has announced plans to expand its natural gas operations in Nigeria following its recent acquisition of Sinopec International Petroleum Exploitation and Production Company Nigeria (SIPEC). The British company disclosed on May 19 that it is entering a new phase of development at the Uquo gas field, located in southeastern Nigeria, where it holds an 80% stake, along with 80% control of the Accugas gas processing plant.

The company intends to drill a new development well at Uquo North-East, targeting production levels of up to 80 million standard cubic feet of gas per day. If successful, Savannah will consider drilling an additional well at Uquo South, aimed at tapping an estimated 154 billion standard cubic feet of prospective gas resources.

Drilling operations are scheduled to begin in the fourth quarter of 2025, at a time when domestic demand for gas is increasing, particularly for power generation and industrial use. Expanding output is central to Savannah’s strategy to meet growing customer needs and reinforce its position in Nigeria’s natural gas market.

The company has already taken preparatory steps, including the commissioning of a compression unit to support long-distance gas transmission and improve distribution to both industrial and domestic users. A second compression unit is expected by the end of June 2025, which will further enhance gas pressure and increase the volume available for sale.

Savannah reports a stable production rate of 23,600 barrels of oil equivalent per day in Nigeria and views the new exploration phase as a critical move to support the country’s energy infrastructure and economic growth.