At Savannah Energy we look to develop our approach to sustainability for the benefit of all our stakeholder groups, taking on board the interests of our investors, host countries and communities, customers, suppliers, partners and our people throughout the Group.
We aim to maintain and improve our social licences to operate in Nigeria and Niger through acting responsibly in relation to our people, the environment and our host communities. Following the acquisition of our Nigerian Assets in November 2019, we have sought to harmonise our policies and processes across the enlarged Savannah group in relation to health, safety, security and the environment, human rights, local content, community relations and social impact investment. In particular, our Accugas business already operates in accordance with the key requirements of the International Finance Corporation’s eight Performance Standards (“IFC PS”) and the World Bank’s Environmental, Health & Safety Guidelines (“WBG EHS Guidelines”) for the energy sector and has done so for several years. In line with this, Accugas provides the ongoing management, monitoring and reporting of its performance on an annual basis in relation to its environmental and social (“E&S”) impacts’ profile, community development, stakeholder management and the health and safety key performance indicators associated with its operations, activities and projects.
We currently provide gas to
of Nigeria’s power
We are set to contribute to
Total investment of
and Niger assets1
Savannah’s 2014-2019 contributions to Nigeria and Niger2
1. Includes investment in Nigeria during the period pre-acquisition of the Nigerian Assets by Savannah.
2. Includes contributions to Nigeria during the period pre-acquisition of the Nigerian Assets by Savannah.
The overarching ambition of Savannah Energy’s presence in Nigeria and Niger is “to make a positive difference” to the socio-economic development of both countries by both our presence there and as a result of our field development, operational activities and strategies. Savannah’s direct socio-economic contributions to both Nigeria and Niger can be measured by the economic value we add through salaries and payments to people, host governments, suppliers and contractors as well as our highly impactful social and community development strategies and projects. In total, we have contributed approximately US$520 million to Nigeria and Niger since 2014, including approximately US$42 million in 20191. In addition, there are the broader indirect benefits of Savannah’s activities in our host countries as our employees and contractors spend their wages, governments distributing tax and royalty revenues, and our neighbouring communities utilise the infrastructure developed by us.
Our true economic contribution is far greater once the wider effects of our presence are considered. In Nigeria this is highlighted by our strategic role in providing a much-needed stable and reliable gas supply to power stations and industrial users. This is in line with the Nigerian Government’s National Gas Policy to reposition the country as an attractive gas-based industrial nation, helping to drive economic growth, prosperity and employment opportunities.
Savannah Energy also aims to play a major role in developing the nascent energy sector of Niger. This is a key stated objective of the Government of Niger with the sector’s potential to increase Niger’s gross domestic product (“GDP”) by an estimated 50% as the country becomes a net exporter of hydrocarbons. Savannah, as one of only three energy companies currently operating in Niger, has the ability to contribute significantly to the future economic development of the country.
The International Development Agency of the World Bank requires Accugas to provide biannual E&S reporting as part of the Partial Risk Guarantee agreement which provides credit support for the long-term gas sales agreement between the Calabar Generation Company and Accugas (Accugas’ largest customer).
Given that a significant part of Savannah’s business already operates in accordance with the IFC PS and WBG EHS Guidelines, we are currently undertaking a holistic review of our approach to sustainability performance reporting, with a view to harmonising and enhancing our approach across the enlarged Group. This includes developing and implementing a best-practice environmental, social and governance performance reporting framework for the Group in line with international industry best practice and related international sector guidelines, which we will then publish as part of an annual sustainability review.
In October 2020, Savannah’s Universal Energy Resources Limited (“UERL”) subsidiary was commended by the Nigeria Extractive Industries Transparency Initiative (“NEITI”) for its performance in terms of compliance and provision of requested industry data for NEITI’s 2019 oil and gas audit. NEITI gave UERL 100% ratings for ‘Timeliness’ and ‘Completeness’. NEITI has produced the data submission compliance report for the Nigerian oil and gas industry audit process since 2015. The report ranks participating entities in terms of compliance with the data submission requirements of the 2019 oil and gas audit process.