Savannah Energy buys ExxonMobil’s assets in Chad, Cameroon for $407m

Savannah Energy Plc, the British independent energy company, has announced the completion of its acquisition of ExxonMobil’s entire upstream and midstream asset portfolio in Chad and Cameroon.

It said in a statement on Saturday that the deal included operatorship of the upstream assets (through the acquisition of the former operator, Esso Exploration and Production Chad, Inc.)

Savannah had announced on December 13, 2021 the signing of a Share Purchase Agreement with ExxonMobil, which has an economic effective date of 1 January 2021, and the publication of its December 31, 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 January 24, 2022, according to the statement.

It said re-admission of the share capital of the group as enlarged by the transaction is scheduled to take place at 8.00 a.m. on December 13, 2022.

Following the completion of the transaction, Savannah now owns a 40 percent interest in the Doba Oil Project and an effective approximately 40 percent 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.

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). 
“We are delighted to announce the completion of our $407 million acquisition of ExxonMobil’s upstream and midstream businesses in Chad and Cameroon,” Andrew Knott, CEO of Savannah Energy, said.

He said: “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 $500m/500 MW of renewable power projects. We expect our investments in these projects to provide significant 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 country.”