Stakeholder engagement

Our people

As of 31 December 2023, we employed 276¹ people across
the Group.

Our employees bring a broad range of experience, expertise and perspective to Savannah that contributes to our collective values and culture, and is essential to the delivery of our strategic objectives. We recognise that our employees are the cornerstone of our business. We engage with our employees in a variety of ways to ensure that they are well informed, motivated and appropriately developed to execute our strategy such that we are able to deliver on the long-term goals of the business.

How we engage
We have an open, collaborative and inclusive management structure and engage regularly with our employees. We do this through a variety of methods, including a performance management process with structured career conversations, regular internal announcements, town hall sessions, screensavers, employee surveys, our corporate intranet site, Company presentations, team away days and our training programmes. During 2023 we introduced a range of new initiatives, such as the ‘Knowledge Exchange’, the Savannah Book Club, the ‘Learning Log’ and the ‘Sparks Programme’ designed to foster engagement and promote collaboration and knowledge sharing. We also launched our refreshed corporate intranet site in November 2023, designed to be a more streamlined and informative resource for employees. Post-year end in January 2024, we launched the ‘Centre for New Ideas’ initiative, designed to unlock employees’ creative potential and help shape the future of Savannah. We also provide an independent “Speak Up” whistleblowing service to enable all employees to report any concerns they may have relating to ethics, compliance and significant workplace issues.

Our host countries and communities

Our current host countries are Nigeria Niger and Cameroon. We work closely with the local communities in our areas of operation in Niger and Nigeria.

In South East Nigeria our footprint covers 22 Local Government Areas (“LGAs”) in Akwa Ibom and Cross Rivers states. Within the 22 LGAs, there are 22 paramount rulers, 247 local communities, each with a village head, and 50 clan heads. Key stakeholders also include various local interest groups representing youths and women, opinion leaders, social cultural groups and government agencies.

In Niger we work with 13 local communities in and around N’Gourti within the Diffa region, which is located in the south-east of the country. We also liaise with in-country non-governmental organisations.

In Cameroon, there are approximately 40 local communities, comprising over 480 households, in the Nganha and Ngaoundéré 3rd districts surrounding our Bini a Warak hybrid hydroelectric and solar project, located in the northern Adamawa Region of the country.

Engagement is key to maintaining our social licence to operate. Our corporate philosophy is based on the conviction that our projects should benefit all of our stakeholders, particularly our host countries and the local communities in which we operate. Acting in a responsible manner towards our stakeholders is seen as critical to the ongoing effectiveness of our operations.

How we engage
We take a constructive and positive approach to working with local communities, seeking to maintain good relationships with them all. We engage with the local communities in which we operate, maintaining our social licence to operate by ensuring that our policies on safety, the environment and human rights are followed to the highest standards in our operations, projects and activities. Regular engagement meetings are held with the local communities in which we operate to discuss and manage any concerns proactively. These meetings also help us keep local stakeholders updated as we progress in our operations and projects. This process is also applicable to our local project contractors who engage with the communities as often as required. The regular interaction, through both formal and informal engagement meetings with local stakeholders, allows us to address any actual and/or perceived issues or concerns they may have, ensuring that our social licence to operate is maintained. The participatory principle is always applied and, wherever it operates, Savannah deploys stakeholder engagement and grievance management procedures in all engagement forums. In addition, we have a local content policy designed to ensure that, wherever possible and appropriate, we prioritise qualified employees and suppliers from our local communities.

In Nigeria, the introduction of the Host Community Development Trust (“HCDT”) mechanism, as part of the 2021 Petroleum Industry Act (“PIA”), has changed how companies deliver community projects in Nigeria. Consequently, the majority of our social impact investment in Nigeria is now channelled via the HCDTs, who select and implement projects on behalf of their local communities. During 2023 we continued to work on setting up HCDTs across our various host communities. Outside the requirements of the new HCDTs, in November 2023 we launched our flagship Savannah Energy Education and Internship Training programme and continued our Graduate Internship programme.

Outside of Nigeria, our social impact investment continues to focus on improving local living standards via health, education and agricultural initiatives, as well as the provision of drinking water and local infrastructure projects. Our projects also provide training to foster future economic self-sufficiency.
 

Governments, local authorities and regulators

 

We engage with over 49 stakeholders within the federal, state and local government as well as other national entities in Nigeria.

In Niger, we engage with over 50 stakeholders within the national government and local authorities, including the chiefs of the 13 tribes located within our asset areas. In the UK, we engage with various governmental departments, primarily those providing assistance and support to UK companies operating abroad. 

To maintain Savannah’s social and legal licences to operate and to build collaborative partnerships with government agencies that generate value for both parties.

How we engage
In 2022 we took a proactive and constructive approach to working with national and local authorities, as well as regulators in Nigeria and Niger. We contribute to government and local authorities in the countries in which we operate in the form of royalties, taxes and fees. Our cumulative payments to local governments in Nigeria and Niger since 2014 total US$199 million.

Photo legend: Laurence Robertson, MP for Tewkesbury and Chair of the Westminster Africa Business Group

Our shareholders and lenders

Our shareholders include both institutional and retail investors who are principally based in the UK and US. Our top ten institutional shareholders hold approximately 57% of our shares. We have a group of 10 lenders consisting of African, US and UK-based banks and institutions, plus a listed bond.

We believe that maintaining a regular and transparent dialogue with our shareholders and lenders is essential in order to earn and retain their confidence. In line with the QCA Corporate Governance Code, the Board must manage shareholders’ expectations and should try to understand the purpose behind their voting decisions. The lenders are an important source of funding for the Group’s operations. In addition, we benefit from their advice and experience of other cash management and risk mitigation tools in the markets in which we operate.

How we engage
Our investor relations programme is designed to answer investor queries and provide public disclosure on results and other material developments within the business. It also ensures that shareholders’ views are communicated to our Board and are considered in the Company’s decision making. Our investor relations programme includes regular updates, calls, meetings, investor roadshows and our Annual General Meeting, as well as participation in investor and industry conferences. We also engage with our investors’ ESG and stewardship teams.

Our customers, suppliers and partners

Our customers in Nigeria include Calabar Generation Company Limited, Lafarge Africa PLC, First Independent Power Limited (“FIPL”), Ibom Power Company Limited, and Central Horizon Gas Company Limited.

Our suppliers in Nigeria include Amalgamated Oil Company Nigeria Limited, whereby our Accugas subsidiary has agreed a contract to 2033 to purchase up to 20 MMscfpd of gas for onward sale to Accugas customers. Our partners in Nigeria include AIIM, which holds a 20% economic interest in each of Accugas Limited and Savannah Energy Uquo Gas Limited, as well as Frontier Oil Limited and Network Oil, our partners in the FUN Manifold. We engage with our customers, suppliers and partners to meet our strategic objectives, grow our business and enable the smooth running of our operations.

How we engage

Our senior management team engages in regular meetings with our customers, suppliers and partners, and we also participate in local industry events. The purpose of this engagement is to establish, manage and maintain relationships with these important stakeholder groups. In Nigeria, our commercial team is responsible for identifying and marketing our gas to potential new customers. Supply chain procedures are in place which govern all procurement of goods and services, and we have a comprehensive vendor contracting strategy in place. These ensure that ethical, regulatory and best practices are strictly adhered to.