* Divestment by bigger companies creates opportunity
* Britain pushes for reinforced Africa ties
* Potential to grow organically and through more purchases
LONDON, Jan 20 (Reuters) - London-listed Savannah
Petroleum's SAVP.L told Reuters on Monday it would consider
oil and gas acquisitions in Nigeria opportunistically, calling a
purchase completed late last year the starting kit for further
expansion.
Savannah Petroleum concluded its purchase of Seven Energy
International's Nigerian gas assets, sub-saharan Africa's
largest gas infrastructure and transportation network, in
November. Andrew Knott, Savannah's chief executive, told Reuters he
would look at other assets that were no longer material for
bigger players. Oil majors such as Chevron and ExxonMobil are
seeking to sell certain Nigerian stakes as they focus on
projects elsewhere. "We will look at things opportunistically," Knott said,
adding that "Seven Energy should be viewed as a starting kit".
He was speaking on the sidelines of the Africa Investment
Summit in London, where British Prime Minister Boris Johnson
joined visiting African leaders as Britain seeks to strengthen
trade ties beyond Europe. In the near term, Knott said the company's focus was to
expand its base of Nigerian industrial customers, such as
factories and power plants, as only about 50% of the capacity of
its gas infrastructure purchase is being used. He said the
company was already providing 10% of Nigeria's power.
Although Nigeria is Africa's largest economy, it faces power
outages that make it heavily reliant on diesel
generators. Knott said Savannah's work to expand the supply of gas to
power stations and industrial customers, which at about $3.50
per thousand cubic feet is cheaper than the roughly $15 for
diesel, would help to clean up the energy sector.
Savannah also has oil assets in Niger, where it has control
of roughly 50% of the oil-prolific Agadem Rift Basin.
"Both base businesses have very good organic growth
opportunities," Knott said, referring to Niger and Nigeria.