Savannah Energy Plc has completed the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, strengthening its foothold in Nigeria’s oil and gas sector.

According to a statement, the deal grants Savannah a 49 per cent non-operated stake in the Stubb Creek oil and gas field, which is 51 per cent owned and operated by Universal Energy Resources Limited, a Savannah affiliate company.

This acquisition marks a major milestone for Savannah, increasing its total reserves and resources base by 30 per cent from 151 million barrels of oil equivalent to 197 million barrels.

It added 227 billion standard cubic feet of 2C gross gas resources at the Stubb Creek Field, enhancing long-term gas feedstock for Accugas customers.

Savannah funded the transaction through a $60m Reserve-Based Lending debt facility arranged by The Standard Bank of South Africa Limited.

The total consideration paid at completion was approximately $35.1m, inclusive of $19.5m of SIPEC’s cash reserves, with an additional $2m in deferred cash consideration payable over eight quarterly instalments.

Following the acquisition, Savannah plans an ambitious 18-month expansion programme aimed at increasing gross production at Stubb Creek from 2.7 Kbopd in 2024 to around 4.7 Kbopd.


https://punchng.com/savannah-energy-completes-acquisition-of-sipec/