- Savannah Energy resumes talks to acquire Petronas’ oil assets in South Sudan, exploring alternative deal structures with key stakeholders like Nilepet.
- Wildcat Petroleum’s collaboration with Nilepet could facilitate a multi-party agreement, enhancing the chances of a successful acquisition.
- Savannah Energy views the South Sudanese assets as crucial to its expansion strategy. They support its broader oil and gas operations in Africa, including projects in Nigeria.
After halting them earlier, Savannah Energy has resumed talks to acquire Petronas’ oil assets in South Sudan. The company is now exploring alternative deal structures and actively collaborating with key stakeholders, including Nilepet, the state-owned oil company.
These oil assets produced an average of 81,000 barrels per day (b/d) in the first ten months of 2024, making them crucial to Savannah Energy’s growth in Africa. Acquiring them will strengthen the company’s portfolio and support its planned drilling projects in Nigeria.
On December 3, 2024, Savannah Energy announced its work on an “alternative transaction structure” with partners. This new approach reflects the company’s ability to adapt to sector challenges and address competing regional interests. The company remains confident that a successful deal will benefit all involved.
“We believe this transaction will be accretive for the company,” said a spokesperson. Savannah Energy plans to share a detailed update on the negotiations by mid-December or the end of the year, hinting at potential progress.
Wildcat Petroleum, a key player in the ongoing talks, may play a significant role. In September 2024, Wildcat signed a six-month collaboration agreement with Nilepet, strengthening its ties with South Sudan’s oil sector. While the exact details remain undisclosed, Wildcat’s involvement increases the likelihood of a multi-party deal to finalise the acquisition.
Savannah Energy’s renewed focus on securing these assets aligns with its larger goal of strengthening its presence in Africa’s energy market. The company seeks to expand its oil and gas operations, and these assets will provide the production capacity needed to support exploration in Nigeria.
These South Sudanese oil assets offer strategic value, and Savannah Energy sees them as essential to its expansion plans. Despite initial obstacles, Savannah continues its push to complete the acquisition, recognising the importance of the oil fields to its long-term objectives in the sector.
Savannah Energy shows determination by overcoming competition and regulatory challenges. The new strategy reflects a willingness to adapt and explore new approaches to securing its goals in the African market.
By closely working with Nilepet and Wildcat Petroleum, Savannah Energy aims to create a deal structure that benefits all stakeholders. If successful, the acquisition will increase Savannah’s production and contribute to South Sudan’s economic growth in the oil industry.
As Savannah Energy continues its negotiations, the energy sector will watch the outcome closely. Securing the Petronas assets will mark a significant milestone for the company and help solidify its foothold in Africa’s oil and gas sector.