• Thursday, July 25, 2024
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Savannah Energy acquires oil assets of ExxonMobil, Petronas across Africa

Savannah Energy to buy Nigerian unit of China’s Sinopec

Savannah Energy PLC, the British independent energy company with a presence in Nigeria has acquired the upstream and midstream assets of ExxonMobil and Petronas in Chad and Cameroon, the company has said.

This development follows Savannah’s maiden announcement on 2nd June 2021 regarding the proposed transaction with Exxon, which involved the Exxon Acquisition and the Petronas Acquisition.

Savannah Energy PLC is an AIM-listed British independent energy company focused on projects that matter in Africa.

In Nigeria, the Company owns a controlling stake in the cash-generating Uquo and Stubb Creek oil and gas fields, as well as the Accugas midstream business in southeast Nigeria, which supplies gas for more than 10 percent of Nigeria’s thermal power generation.

Andrew Knott, Chief Executive Officer, Savannah Energy PLC said, “I am delighted that we are announcing this afternoon the signature of SPAs to acquire control of the upstream and midstream assets of Exxon and PETRONAS in Chad and Cameroon.

“We see strong potential to significantly increase upstream production and midstream throughput volumes from current levels through incremental investments and look forward to providing more information around our forward plans for the assets, and their potential, upon publication of our AIM Admission Document and the Company’s restoration to trading on AIM on or around December 17.

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The completion of both the Exxon Acquisition and the PETRONAS Acquisition would result in the Company acquiring a 75 percent controlling interest in the Doba Oil Project and an effective 70percent indirect controlling interest in the Chad-Cameroon export transportation system.

The remaining 25 percent interest in the Doba Oil Project is held by the national oil company of Chad, SHT Petroleum Chad Company Limited.

The remaining 30 percent interest in the Chad-Cameroon export transportation system is held indirectly by affiliates of SHT together with the Republic of Chad and the national oil company of Cameroon, Société Nationale Des Hydrocarbures.

In 2020, the Doba Oil Project produced an average gross of 33.7 Kbopd and the Chad-Cameroon pipeline transported a gross 129.2 Kbopd.

Knott said: “These assets have generated billions of dollars of critical tax revenues for their host countries and free cash flow to their owners since the onset of first oil production in 2003.

“Further, under our stewardship, we expect these assets in aggregate to generate positive free cash flow and fiscal revenues for Chad and Cameroon for a further twenty-five plus years.

“For Savannah, these deals are expected to see our production levels and reserve base more than double,” he said.