TheCable

Savannah Energy Plc, a British independent energy company, says it has terminated the shares purchasing agreement (SPA) with Petronas, Malaysian state-owned company.

Both companies entered into the SPA to acquire Petronas upstream and midstream asset portfolio in Chad and Cameroon.

In a recent statement, both firms said the completion of the proposed acquisition remained subject to satisfaction of certain conditions which were yet to be met.

“Completion of the proposed acquisition remained subject to satisfaction of certain conditions precedent which have not yet been satisfied, and Savannah and Petronas have, therefore, mutually agreed to terminate the SPA with immediate effect,” the statement reads.

Savannah had commenced the acquisition process of upstream and midstream assets of ExxonMobil and Petronas in Chad and Cameroon in December 2021.

While the ExxonMobil deal was completed, that of Petronas was halted.

Last week, Savannah announced the completion of its acquisition of ExxonMobil’s entire assets in Chad and Cameroon, which has an economic effective date of January 1, 2021.

If both acquisition had been completed, Savannah would be holding 75 percent controlling interest in the Doba Oil Project (DOP) and an effective 70 percent indirect controlling interest in the Chad-Cameroon export transportation system.

Instead, Savannah now owns a 40 percent interest in the DOP and an effective 40 percent indirect interest in the Chad-Cameroon export transportation system.

The remaining 25 percent interest in the DOP is held by SHT Petroleum Chad Company Limited, the national oil company of the north-central African country. 

Also, the remaining 30 percent interest in the Chad-Cameroon export transportation system is held indirectly by affiliates of SHT together with the Republic of Chad and National Hydrocarbons Corporation of Cameroon (SNH), Cameroonian national oil company.

Meanwhile, Savannah Energy Plc has footprints across Africa, including Nigeria.

In Nigeria, the company has a controlling interest in a large-scale integrated gas production and distribution business which is currently supplying gas to facilitate over 24 percent of Nigeria’s thermal power generation.

The company acquired the Nigerian assets in November 2019, which comprise interests in two large-scale oil and gas fields: the Uquo non-associated gas field and the Stubb Creek oil and gas field as well as the Accugas midstream business, all of which are located in the nation’s south-east region.