Savannah Energy announces $1.25 billion purchase of oil fields in South Sudan
(WO) — 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). The announcement came on Dec. 12, with the acquisition having been made to the tune of $1.25 billion.
“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.
Ayuk added, “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.”
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).
The 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 JOCs currently operate in Blocks 3/7, 1/2/4, and 5A in South Sudan and, with a gross output of 153,000 bopd, 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 the 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.
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.
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.