The company will acquire a 75% stake in the Doba Oil Project and a 70% indirect controlling stake in the Chad-Cameroon export transportation system
UK-based Savannah Energy has agreed to acquire upstream and midstream assets of Exxon Mobil and Petronas in Chad and Cameroon for a combined value of $626m.
Under the share purchase agreement (SPA), Savannah will acquire Exxon Mobil’s complete upstream and midstream asset portfolio in both countries for $360m.
The company will also acquire Petronas’ Overseas Ventures’ entire upstream and midstream asset portfolio in both countries for $266m.
As part of the deal, Savannah will acquire a 75% stake in the Doba Oil Project, as well as a 70% indirect controlling stake in the Chad-Cameroon export transportation system from Exxon Mobil and Petronas.
The national oil company of Chad SHT Petroleum Chad will hold a 25% stake in the Doba Oil Project.
The remaining 30% stake in the Chad-Cameroon export transportation system will be held indirectly by affiliates of SHT along with the Republic of Chad and the national oil company of Cameroon Société Nationale Des Hydrocarbures.
Savannah Energy CEO Andrew Knott said: “These assets have generated billions of dollars of critical tax revenues for their host countries and free cashflow 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 cashflow and fiscal revenues for Chad and Cameroon for a further twenty-five plus years.”
The Chad-Cameroon export transportation system includes a 1,081km pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon.
Last year, the Doba Oil Project produced an average gross 33.7Kbopd, while the Chad-Cameroon pipeline shipped a gross 129.2Kbopd.
Savannah Energy has controlling interests in the Uquo and Stubb Creek oil and gas fields and the Accugas midstream business in Namibia.