Savannah Energy has agreed to acquire all the oil and gas assets of Malaysian state-owned firm Petronas in South Sudan in a deal worth up to $1.25bn.
In this regard, the British energy company has entered into a share purchase agreement (SPA) with Petronas International to acquire Petronas Carigali Nile (PCNL), the holding company of the assets.
Through the deal, Savannah Energy gains interests in three joint operating companies (JOCs) that operate Block 3/7, Block 1/2/4, and Block 5A.
In Block 3/7 and Block 1/2/4, the British firm will get stakes of 40% and 30%, respectively, and in Block 5A, it will get a stake of 67.9%.
The assets involved in the deal include interests in 64 producing fields. The first of which began production in 1999.
According to Savannah Energy, the 2021 production of the assets was an average gross 153.2 thousand barrels of oil per day (Kbopd).
Major partners in the joint operating companies are CNPC, ONGC, Sinopec, and South Sudanese national oil company Nilepet.
Savannah Energy expects to fund the acquisition consideration via a mix of the available cash resources and debt of the enlarged group.
The closing of the deal is subject to the approval of the South Sudan government, the approval of Savannah Energy’s shareholders, and other preceding conditions.
Last week, Savannah Energy, which is focussed on African oil and gas operations, closed the previously announced $407m acquisition of ExxonMobil’s upstream and midstream assets in Chad and Cameroon. In late 2021, the British firm also agreed to acquire Petronas’ Overseas Ventures’ entire upstream and midstream asset portfolio in the two African countries for $266m.
