Savannah Energy has signed a share purchase agreement (SPA) with ExxonMobil Corporation, ExxonMobil International Holdings and Esso Exploration Holdings and has separately signed an SPA with PETRONAS (E&P) Overseas Ventures for the purchase of each of their entire upstream and midstream asset portfolios in Chad and Cameroon
This follows Savannah's initial announcement on 2 June 2021 regarding the proposed transaction with Exxon, and Savannah's earlier announcements regarding the Exxon Acquisition and the PETRONAS Acquisition.
Completion of both the Exxon acquisition and the PETRONAS acquisition would result in the company acquiring a 75% controlling interest in the Doba Oil Project and an effective c. 70% indirect controlling interest in the Chad-Cameroon export transportation system.
The remaining 25% interest in the Doba Oil Project is held by the national oil company of Chad, SHT Petroleum Chad Company Limited (SHT). The remaining 30% interest in the Chad-Cameroon export transportation system is held indirectly by affiliates of SHT together with the Republic of Chad and the national oil company of Cameroon, Société Nationale Des Hydrocarbures.
Andrew Knott, CEO of Savannah Energy, commented, “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.”
“We see strong potential to significantly increase upstream production and midstream throughput volumes from current levels through incremental investments and look forward to providing more information around our forward plans for the assets, and their potential, upon publication of our AIM Admission Document and the company's restoration to trading on AIM on or around December 17,” Knott added.
