Savannah Energy acquires Sinopec

British independent energy company, Savannah Energy PLC, has completed the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC), whose principal asset includes 49% non-operated interest in the Stubb Creek oil & gas field 

The Stubb Creek field is operated by Savannah-affiliate Universal Energy Resources Limited with a 51% ownership. 

The acquisition boosts Savannah's reserves and resources base by approximately 30% from 151mn barrel of oil equivalent to 197mn boe, and adds 227bn standard cubic feet of 2C gross gas resources at Stubb Creek Field. This ensures a long-term feedstock gas back up for commercial purposes. 

The Stubb Creek field will be prepared for further production boost to approximately 4.7k bopd from the current 2.7kbopd as Savannah plans an 18-month expansion programme. "We are delighted to announce the completion of the SIPEC Acquisition - the achievement of one of our core business priorities for 2025. Our focus at the Stubb Creek Field will now turn to progressing the expansion project, which we expect to increase production by almost three quarters over the course of 2025/26," said Andrew Knott, Chief Executive Officer of Savannah.

Stubb Creek Field, located in Akwa Ibom State, Nigeria, is a producing oil field with considerable undeveloped, non-associated 2C gas resources. Commercial oil production started at Stubb Creek Field in 2015, with cumulative production of 8.1 MMstb to 31 December 2024. Oil produced at Stubb Creek Field is processed through production facilities onsite and then exported to the Qua Iboe terminal via a 25 km pipeline. The Stubb Creek Field was converted to a 20-year petroleum mining lease, PML20, in accordance with the Petroleum Industry Act 2021 and effective from 1 December 2023.