The acquisition of Seven Energy is said to transform Savannah Petroleum into a full-cycle exploration and production company in West Africa
UK-based Savannah Petroleum has wrapped up its acquisition of Nigerian oil and gas company Seven Energy, about two years after announcing the deal.
The acquisition was completed following a court hearing last week during which administrators were appointed to the Nigerian company. The administrators subsequently completed the transfer of the company’s assets to group companies controlled by Savannah Petroleum and African Infrastructure Investment Managers (AIIM).
Through the acquisition of Seven Energy, the UK firm has now taken stakes in Seven Uquo Gas, in the Stubb Creek field, and in the Accugas midstream business.
Savannah Petroleum CEO Andrew Knott said: “The deal transforms Savannah into a full-cycle E&P company in West Africa and marks the start of a very exciting time for us. We have acquired a business with great people and a strong set of exploration, appraisal, development and production assets which are expected to be highly cash flow generative for the Company.”
Details of the assets added through the acquisition of Seven Energy
Savannah Petroleum has acquired 80% stake in Seven Uquo Gas, which has a participating stake of 40% in the Uquo field located in South East Nigeria. Seven Uquo Gas will take over responsibility for all operations of the gas project at the Uquo field after the completion of its previously announced transaction with Frontier Oil.
The British oil and gas company gets a 51% stake in the Stubb Creek field located in South East Nigeria via Seven Energy’s 100% ownership of Universal Energy Resources.
In the Accugas midstream business, the company gets an 80% stake. The Accugas midstream operations is made up of the Uquo gas processing facility, which has a capacity of 200 mmscfd, a 260km long pipeline network, and long-term gas sales agreements with downstream customers.
Savannah Petroleum has offloaded 20% stakes each in Seven Uquo Gas and Accugas to AIIM for $54m.
Savannah Petroleum chairman Steve Jenkins said: “In Nigeria, our focus is on delivering further growth in the Company’s revenue base, and as we continue to develop in country we see strong potential for additional resource growth over time.
“In Niger, we look forward to recommencing activity in 2020, with expected delivery of first oil from R3 East and a multi-well exploration drilling campaign.”