Savannah Signs SPA with Cameroon’s Société Nationale Des Hydrocarbures
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, is pleased to announce that its wholly owned subsidiary, Savannah Midstream Investment Limited (“SMIL”), has signed a Share Purchase Agreement (“SPA”) with the national oil company of Cameroon, Société Nationale Des Hydrocarbures (“SNH”), relating to the sale by SMIL and purchase by SNH of 10% of the issued share capital (the “Shares”) in Cameroon Oil Transportation Company S.A. (“COTCo”) (the “Transaction”).
COTCo owns and operates the 903km Cameroon section of the Chad-Cameroon export pipeline, the Kome Kribi 1 floating storage and offloading facility and related infrastructure.
The pipeline has a 250 Kbopd nameplate capacity and is the only international export route for oil production in Chad. During 2022, COTCo transported an average of 124 Kbopd of crude oil valued at an estimated US$4.6bn at the prevailing Brent crude oil prices.
In consideration for the sale of the Shares, SNH will pay a cash consideration of US$44.9 million (the “Consideration”) to SMIL. The Consideration, when received, will be used by the Savannah group for part repayment of existing debt facilities.
Completion of the transfer of the Shares from SMIL to SNH will result in SMIL shareholding in COTCo reducing from 41.06% to 31.06%.
Completion shall occur upon satisfaction of certain conditions precedent related to amendments to the bylaws of COTCo and is expected to occur in H2 2023.
SMIL will retain the right to the dividend attaching to the Shares until the date of payment of the Consideration.
Pursuant to the terms of the SPA, SNH and SMIL have pledged, inter alia, their support of one another as shareholders in COTCo.
Oando Clean Energy Partners with Lagos State to Launch Electric Mass Transit Buses
Oando Clean Energy Limited has partnered with the Lagos State Government to launch electric mass transit buses in the city. The partnership aims to provide sustainable transportation options for commuters and reduce carbon emissions in the city.
The electric buses, produced in partnership with Yutong Bus Co Limited, are equipped with air conditioning and Wi-Fi for passenger comfort. Oando Clean Energy has also provided charging stations and spare parts to ensure the effective operation of the buses.
The partnership was formalized through a Memorandum of Understanding (MoU) signed between Oando Clean Energy and the Lagos Metropolitan Area Transport Authority (LAMATA). LAMATA is responsible for planning, implementing, regulating, and franchising sustainable integrated public transport in Lagos.
According to the MoU, the electric buses will be deployed as part of a larger Electric Vehicle (EV) Infrastructure Ecosystem that includes charging stations and other supporting infrastructure. This initiative is aimed at attaining a sustainable road transport system in Lagos State and bridging the gap in the current mass transit bus system for the increasing number of Lagos commuters.
Oando Clean Energy’s strategic vision is to decarbonize the transport system in Nigeria and strengthen the socio-economic impact of transportation within the country. The company aims to transition the current combustion mass transit buses to electric over the next seven years, starting in Lagos State and eventually across the country.
The launch of the electric buses in Lagos State is aligned with the Nigeria Energy Transition Plan (NETP) and supports the Government’s roadmap for EV implementation across Nigeria. The partnership also aims to boost local capacity in the medium term through the construction of EV assembly plants.
Apart from reducing carbon emissions and providing sustainable transportation options, the initiative is expected to lead to improved air quality, enhanced public health, and the employment of at least 3,000 new drivers and an additional 2,000 workers to support bus maintenance, depot management, etc. The initiative is also expected to result in estimated economic cost savings of US$2.6bn (3.6% of Lagos’s GDP).
The launch of the electric mass transit buses is a significant step towards achieving a sustainable transport system in Lagos State and Nigeria as a whole. It is expected to serve as a model for other African countries seeking to transition to sustainable transportation systems.
AKK Gas Pipeline: NNPC Ltd Invests Over $1bn in One of Nigeria’s Largest Projects
The Nigerian National Petroleum Company Limited (NNPC Ltd) has invested over $1 billion in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. This project is one of the largest projects undertaken by NNPC Ltd in recent years.
The AKK gas pipeline project is a 614-kilometer pipeline that will transport natural gas from Ajaokuta in Kogi State to Kaduna and Kano states.
Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, announced that the project has not stopped for a single day since its commencement, despite the lack of third-party financing.
He added that NNPC Ltd has continued to fund the project, and the company has so far spent over $1.1 billion on the project from its cash flow.
Kyari stated that the AKK gas pipeline project is one of the most massive projects undertaken by NNPC Ltd, and it is of immense value to the country and the socio-economic growth of Nigeria.
He assured the Nigerian public that NNPC Ltd would deliver the project as planned. According to him, the project will create employment opportunities and boost the economy of Nigeria.
Kyari disclosed that NNPC Ltd currently owes no single dollar to its contractors, and the company has paid all their invoices.
He said that there are over 30 sites that are active today in the AKK gas pipeline project, and NNPC Ltd is optimistic that it will deliver the project.
The Vice President of Nigeria, Prof. Yemi Osinbajo, said that the AKK gas pipeline project was 43% completed last week. Osinbajo spoke through the Secretary to the Government of the Federation at a function in Abuja, where he reiterated that the project was a major project of the regime of President Muhammadu Buhari.
President Buhari inaugurated the AKK gas pipeline project in July 2020. During the inauguration, it was announced that the Bank of China and Sinosure, a Chinese export and credit insurance corporation, were to fund the $2.8 billion facility. However, NNPC Ltd has continued to fund the project without third-party financing.
Unauthorized Meter Use by Electricity Consumers Causing IBEDC an Average Loss of N130 Million Monthly
Unauthorized meter use by some electricity consumers in Ibadan is causing the Ibadan Electricity Distribution Company (IBEDC) an average loss of N130 million monthly.
This was disclosed by the commission after it lamented that illegal meters of about 15,000 existing in its network across the state have caused heavy revenue loss.
Investors King understands that these unauthorized meters used by some residents of the state are reported to consume energy, meanwhile, the IBEDC does not generate any revenue from it.
Commenting on the issue, the IBEDC regional head for Osun. Engr. Oluwatoyin Akinyosoye while speaking at a town hall stakeholder meeting in Osogbo, stated that in a bid to curb this menace, the company has stopped the installation of the illegal meters which use cards to load electricity since 2013.
In his words,
“To us as a company, this is a huge loss in our revenue because these illicit meters consume energy on our network, but the revenue is not coming to us. If we can curb these illicit meters, we know that we can plunge back the revenue to our purse to serve our customers better. These illicit meters were gotten through the backdoor, unknown to us till now. Most of these meters are the ones that you have to use a card for before you can load.
“As a company, we stop the installation of these types of meters since 2013. So, any other one installed between 2013 till now are illicit meters”.
Mr. Akinyosoye further urged those still using the unauthorized meter to report at the company’s office to address the issue, warning that those who fail to do so, would have their supply disconnected and be prosecuted.
It is however interesting to note that the Ibadan Electricity Distribution Company (IBEDC) is the largest electricity distribution company in Nigeria. Since it began operations in 2013, it has delivered electricity to millions of Nigerians across several states which include Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi.
Top 7 Richest People in The World Earned $16 Billion in the Last 24 Hours
FBN Holdings Profit Decline in 2022 Financial Year as Operating Expenses Surged
Tether Recovers All $20 Billion Lost in 2022, Market Capitalization Hits A New Record High
Cryptocurrency4 weeks ago
Binance Resumes Bitcoin Withdrawals After Pause, Cites Congestion of Network
Technology4 weeks ago
Apple And Google Collaborate to Stop Unwanted Tracking of People by Bluetooth Devices
Naira4 weeks ago
Nigerian Naira Appreciates Amidst Decline in Foreign Exchange Market Turnover
Fintech4 weeks ago
WhatsApp Users in Singapore Can Now Pay Local Businesses Through Chat
eNaira4 weeks ago
IMF Managing Director Cautions About Unforeseeable Consequences of Retail CBDCs
Cryptocurrency4 weeks ago
Fedi Raises $17 Million to Launch Alpha Version of Federated Operating System
Cryptocurrency3 weeks ago
Pepecoin Traders Remain Bullish Despite Recent Price Correction; Whales Continue to Accumulate
Banking Sector4 weeks ago
Fidelity Bank Plans to Acquire Additional Banks as it Expands Footprint Across Africa