. Concludes ExxonMobil’s Chad, Cameroon $407m portfolio acquisition
Savannah Energy PLC announced that it had entered into a Share Purchase Agreement (SPA) with PETRONAS (E&P) Overseas Ventures SDN. BHD., to acquire PETRONAS’ upstream and midstream asset portfolios in Chad and Cameroon.
The completion of the proposed acquisition is subject to satisfaction of certain conditions precedent which have not yet been satisfied, and Savannah and PETRONAS have, therefore, mutually agreed to terminate the SPA with immediate effect, the company said in a statement on Tuesday.
The SPA termination comes on the heels of last week’s announcement of the completion of its acquisition of ExxonMobil’s entire upstream and midstream asset portfolio in Chad and Cameroon, including operatorship of the upstream assets.
The acquisition valued at about $407 million was done through the former operator, Esso Exploration and Production Chad, Inc.
Savannah Energy, a British independent energy company focused on portfolio expansion in Africa, also announced the publication of a Supplemental Admission Document in relation to the ExxonMobil transaction.
This followed Savannah’s notification of the signing of an SPA with ExxonMobil, which had an economic effective date of January 1, 2021, and the publication of its December 31, 2021 Admission Document containing details on, inter alia, the ExxonMobil transaction.
The ExxonMobil transaction constituted a reverse takeover transaction pursuant to AIM Rule 14, and, accordingly, was subject to, inter alia, shareholder approval which was granted on 24 January 2022, and has now been completed.
Re-admission of the share capital of the group as enlarged by the ExxonMobil transaction is scheduled to take place at 8.00 a.m. on 13 December 2022.
Outside of Chad and Cameroon, we expect that, in the coming months, we will further augment our corporate growth profile through the announcement of additional hydrocarbon asset acquisitions and the initiation of new utility-scale renewable energy projects…
Transaction highlights
Following the completion of the ExxonMobil transaction, Savannah now owns a 40% interest in the Doba Oil Project and an effective c. 40% indirect interest in the Chad-Cameroon export transportation system:
The Doba Oil Project comprises interests in seven producing fields – Kome, Miandoum, Bolobo, Moundouli, Maikeri, Nya and Timbre – with a combined gross 2P Reserve base of 142.3 MMbbls as at 1 October 2022 and expected 2022 gross production of 28.0 Kbopd; and
The Chad-Cameroon export transportation system comprises a 1,081 km pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon (along with all associated facilities).
The Chad/Cameroon pipeline is 30” in diameter with a nameplate capacity of 250 Kbopd and an estimated pipeline throughput in 2022 of 124 Kbopd, from more than 15 fields;
The Company’s proposed acquisition of PETRONAS (E&P) Overseas Ventures SDN. BHD’s interests in the same assets in Chad and Cameroon are not a condition of the ExxonMobil transaction.
The Chief Executive Officer (CEO), Savannah Energy, Andrew Knott, said: “We are delighted to announce the completion of our $407 million acquisition of ExxonMobil’s upstream and midstream businesses in Chad and Cameroon.
“I would like to warmly welcome our new employees to the Savannah family and look forward to building our in-country businesses with them as we embrace the multiple growth opportunities available to us.
“In Chad, our focus will immediately turn towards making the investments we believe the Doba oil project needs to significantly increase production volumes from current levels and the advancement of our up to $500m/500MW of renewable power projects.
“We expect our investments in these projects to provide a significant increase in tax revenues and electricity access for the people of Chad.
“In Cameroon, we hope to see the COTCo and TOTCo businesses grow further over the course of the coming years through additional third-party customer throughput volumes. We are also actively considering investments in other opportunities to pursue projects that matter in-country.
“Outside of Chad and Cameroon, we expect that, in the coming months, we will further augment our corporate growth profile through the announcement of additional hydrocarbon asset acquisitions and the initiation of new utility-scale renewable energy projects (in addition to our existing up to 750MW project pipeline).”
