- An affiliate of Savannah Energy, Universal Energy Resources Limited is the 51 per cent owner and operator.
- The Nigerian unit’s principal asset, a 49 per cent non-operated interest in the Stubb Creek oil and gas field, is in Akwa Ibom State, Nigeria.
Savannah Energy Plc, a British energy company, has signed separate Share Purchase Agreements with Sinopec International Petroleum Exploration and Production Corporation and Jagal Ventures Limited. These agreements aim to acquire 100 per cent of the outstanding share capital of its Nigerian unit, Sinopec International Petroleum Exploration and Production Company Nigeria Limited.
In a statement issued on Tuesday, the firm said that the Nigerian unit’s principal asset, a 49 per cent non-operated interest in the Stubb Creek oil and gas field, is in Akwa Ibom State, Nigeria. It added that an affiliate of Savannah, Universal Energy Resources Limited, is the 51 per cent owner and operator.
The statement read, “The SIPC SPA will see Savannah Energy SC Limited (a wholly owned subsidiary of Savannah) acquire a 75 per cent equity interest in SIPEC for cash consideration of $52m, payable on completion and subject to customary adjustments for a transaction of this nature from 1 September 2023.
“The Jagal SPA will see Savannah Energy SC Limited acquire a 25 per cent equity interest in SIPEC for cash consideration of $7.5m (without adjustment), payable on completion, plus $2m in deferred cash consideration payable in eight equal quarterly instalments post-completion.
“The transaction consideration is expected to be funded through a new bank debt facility arranged by The Standard Bank of South Africa Limited and the company’s existing cash resources. Completion under each of the SPAs is subject to the parties’ satisfaction of customary conditions precedent, including certain regulatory approvals, as well as a mechanism ensuring that completion under both SPAs occurs simultaneously.”
In his comments on the deal, the Chief Executive Officer of Savannah Energy, Andrew Knott, said the firm remains committed to growing its core business in Nigeria through a combination of value accretive acquisitions and organic projects, which the announcement of the SIPEC Acquisition reflects.