Savannah Energy has announced its agreement to purchase producing oil fields in South Sudan, a deal which follows the company’s 9th of December announcement of its procurement of ExxonMobil’s upstream and downstream portfolio in Chad and Cameroon
Africa-focused British independent energy company, Savannah Energy, has announced the acquisition of producing oil fields in South Sudan from Malaysian state oil and gas company, Petronas, a move highly supported by the African Energy Chamber (AEC) (http://www.EnergyChamber.org). The announcement came on 12 December, with the acquisition having been made to the tune of $1.25 billion.
Having entered a Share Purchase Agreement with Petronas to procure the company’s entire oil and gas asset portfolio in South Sudan – through the acquisition of its subsidiary, Petronas Carigali Nile Limited – the completed transaction will result in Savannah Energy’s attainment of interests in three Joint Operating Companies (JOCs) of which other partners include international energy company, the China National Petroleum Corporation; India’s flagship energy major, the Oil and Natural Gas Corporation; and South Sudan’s national oil and gas company, Nilepet.
The Transaction Consideration is expected to be financed through a combination of the enlarged Group’s available cash resources and debt
The JOCs currently operate in Blocks 3/7, 1/2/4, and 5A in South Sudan and, with a gross output of 153,000 barrels of oil per day, the Petronas assets comprise interests in 64 producing fields in the East African country.
“The Transaction Consideration is expected to be financed through a combination of the enlarged Group’s available cash resources and debt,” Savannah indicated in a statement.
Subject to approval of the Government of the Republic of South Sudan as well as Savannah Energy’s shareholders, the announcement follows the procurement by Savannah Energy of oil and gas supermajor, ExxonMobil’s, entire upstream and downstream asset portfolio in Chad and Cameroon for $407 million.
“The AEC is fully in support of yet another monumental transaction for Savannah Energy, which will certainly offer new opportunities for South Sudan as the gateway to East African energy. With Savannah Energy, South Sudan will benefit with more jobs, local content, sustainable energy development, opportunities for women, and an aggressive turnaround of declining fields. ” states NJ Ayuk, Executive Chairman of the AEC, adding that, “Savannah Energy’s presence in Africa demonstrates the lucrative opportunities present here, and the opportunities for independent energy companies to participate in the continent’s energy future and allow Africa to bring energy to its people by making full use of its natural resources, which was highlighted during African Energy Week this year, where discussions were made supporting the presence of independents that can sustainably operate assets acquired from international supermajors.”
Fully committed to bringing reliable and profitable projects to Africa, Savannah Energy has been unrivaled in its commitment to African energy, with the company’s vast portfolio of renewable energy projects – as well as its impressive upstream and midstream portfolio – contributing towards its Projects that Matter Initiative, which is active in Cameroon, Chad, Niger and Nigeria. In addition to demonstrating the company’s commitment to unlocking the true potential of Africa’s oil and gas resources, the most recent South Sudan acquisition is set to usher in new opportunities for energy security and affordability in Africa on the back of new exploration and production drives by independents.
