Savannah Energy PLC, the British independent energy company focused on the delivery of Projects that Matter in Africa, is pleased to announce the completion of its acquisition of ExxonMobil’s entire upstream and midstream asset portfolio in Chad and Cameroon, including operatorship of the upstream assets (through the acquisition of the former operator, Esso Exploration and Production Chad, Inc.). Savannah is also pleased to announce the publication of a Supplemental Admission Document (the “Document”) in relation to the ExxonMobil Transaction.
This announcement follows Savannah’s 13 December 2021 announcement of the signing of a Share Purchase Agreement (“SPA”) with ExxonMobil, which has an economic effective date of 1 January 2021, and the publication of its 31 December 2021 Admission Document containing details on, inter alia, the ExxonMobil Transaction. The ExxonMobil Transaction constituted a reverse takeover transaction pursuant to AIM Rule 14 and, accordingly, was subject to, inter alia, shareholder approval which was granted on 24 January 2022. The ExxonMobil Transaction has now been completed.
Re-admission of the share capital of the group as enlarged by the ExxonMobil Transaction is scheduled to take place at 8.00 a.m. on 13 December 2022.
Following the completion of the ExxonMobil Transaction, Savannah now owns a 40% interest in the Doba Oil Project and an effective c. 40% indirect interest in the Chad-Cameroon export transportation system:
The Doba Oil Project comprises interests in seven producing fields – Kome, Miandoum, Bolobo, Moundouli, Maikeri, Nya, and Timbre – with a combined gross 2P Reserve base of 142.3 MMbbls as of 1 October 2022 and expected 2022 gross production of 28.0 Kbopd; and
The Chad-Cameroon export transportation system comprises a 1,081 km pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon (along with all associated facilities). The Chad/Cameroon pipeline is 30” in diameter with a nameplate capacity of 250Kbopd and an estimated pipeline throughput in 2022 of 124 Kbopd, from more than 15 fields;
The Company’s proposed acquisition of PETRONAS (E&P) Overseas Ventures SDN. BHD.’s interests in the same assets in Chad and Cameroon is not a condition of the ExxonMobil Transaction.
Andrew Knott, CEO of Savannah Energy, said: “We are delighted to announce the completion of our US$407 million acquisition of ExxonMobil’s upstream and midstream businesses in Chad and Cameroon. I would like to warmly welcome our new employees to the Savannah family and look forward to building our in-country businesses with them as we embrace the multiple growth opportunities available to us.
In Chad, our focus will immediately turn towards making the investments we believe the Doba Oil Project needs to significantly increase production volumes from current levels and the advancement of our up to US$500m/500 MW of renewable power projects. We expect our investments in these projects to provide significantly increased tax revenues and electricity access for the people of Chad. In Cameroon, we hope to see the COTCo and TOTCo businesses grow further over the course of the coming years through additional third-party customer throughput volumes. We are also actively considering investments in other opportunities to pursue Projects that Matter in the country.
Outside of Chad and Cameroon, we expect that, in the coming months, we will further augment our corporate growth profile through the announcement of additional hydrocarbon asset acquisitions and the initiation of new utility-scale renewable energy projects (in addition to our existing up to 750MW project pipeline).