Page 16 - AfrOil Week 50 2021

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
Savannah Energy signs

share purchase agreements
with ExxonMobil, Petronas

Savannah Energy, the British independent
energy company focused around the delivery
of Projects that Matter in Africa, has announced
that it has signed a Share Purchase Agreement
(SPA) with ExxonMobil Corp., ExxonMobil production in 2003. Further, under our steward- featuring Puot Kang Chol, the Minister of Petro-
International Holdings and Esso Exploration ship, we expect these assets in aggregate to gener- leum for the Republic of South Sudan.
Holdings and has separately signed an SPA with ate positive free cashflow and fiscal revenues for The Minister will discuss opportunities for
Petronas (E&P) Overseas Ventures relating to Chad and Cameroon for a further 25-plus years. US investors in South Sudan’s oil, gas, and energy
the purchase of each of their entire upstream “For Savannah, these deals are expected to sectors. The discussion will be driven by Jude
and midstream asset portfolios in Chad and see our production levels and reserve base more Kearney-Managing Partner, Asafo US, Dean
Cameroon. The SPAs both have an economic than double. Further, we see strong potential to Foreman, Chief Economic Officer of the Amer-
effective date of January 1, 2021. This follows significantly increase upstream production and ican Petroleum Institute, Dr. Sara Vakhshouri,
Savannah’s initial announcement on June 2, midstream throughput volumes from current founder and president of SVB Energy Interna-
2021, regarding the proposed transaction with levels through incremental investments and tional, and C. Derek Campbell, Executive Chair-
Exxon, and Savannah’s earlier announcements look forward to providing more information man of African Metals Group.
today regarding the Exxon Acquisition and the around our forward plans for the assets, and With South Sudan’s upcoming licensing
Petronas Acquisition. their potential, upon publication of our AIM round expected to drive exploration and pro-
Completion of both the ExxonMobil Acqui- Admission Document and the Company’s resto- duction, the role that US energy companies play
sition and the Petronas Acquisition would result ration to trading on AIM on or around Decem- in ensuring the growth of the country’s economy
in the Company acquiring a 75% controlling ber 17. I would also like to this opportunity to is key to developing the sector. The interaction
interest in the Doba Oil Project and an effective welcome the incoming employees to Savannah of oil companies amongst the country’s different
circa 70% indirect controlling interest in the and acknowledge with gratitude the support we communities, the contribution of oil and gas to
Chad-Cameroon export transportation system. have received from our stakeholders in govern- the country’s society and economy, the expan-
The remaining 25% interest in the Doba Oil ment. Lastly, I would thank the ExxonMobil, sion and innovation of the industry brought
Project is held by the national oil company of Petronas and Savannah deal and advisory teams about by US investment and the positive role of
Chad, SHT Petroleum Chad Co. Ltd (SHT). The for the hard work that has been undertaken to local participation and job creation will be key
remaining 30% interest in the Chad-Cameroon get to this point.” highlights touched upon at the event.
export transportation system is held indirectly Background: Petronas and ExxonMobil The Power Breakfast will permit the Minister
by affiliates of SHT together with the Republic announced in May 2020 that they were working to discuss climate change and energy poverty in
of Chad and the national oil company of Cam- with advisors on a proposed sale of their stakes South Sudan and to provide updates on oilfield
eroon, Société Nationale des Hydrocarbures in the Chad project expected to be worth more licenses, services and developments in the coun-
(SNH). For reference, in 2020 the Doba Oil than $1bn. The project includes oil fields in try. They will also provide insight into the coun-
Project produced an average gross 33,700 bpd southern Chad and a major pipeline transport- try’s experiences with US sanctions, including
and the Chad-Cameroon pipeline transported a ing crude oil to a marine terminal for exporta- the impact that such restrictions have on their
gross 129,200 bpd. tion in Cameroon. effort to promote greater investment. During the
Due to their size and nature, both the Exxon- Savannah Energy, December 13 2021 breakfast, there will be important discussions on
Mobil Acquisition and the Petronas Acquisition the restrictions on trade and business between
individually constitute reverse takeover trans- the US and South Sudan in the energy sector,
actions pursuant to AIM Rule 14 and, accord- EVENTS with the Minister calling for enhanced technol-
ingly will be subject to, inter alia, shareholder ogy and innovation so as to optimise and mod-
approval. The Company intends to publish the US-Africa Committee ernise a vitally important sector.
associated AIM Admission Document, which “This meeting reflects the critical and lucra-
will contain a notice of general meeting, on or to host South Sudan’s tive role that US companies can play in building
around December 17, 2021, following which African nations through their respective energy
point the Company would seek restoration to petroleum minister to industries,” stated Kearney. He added: “There
trading on AIM of its ordinary shares. are opportunities in South Sudan and Africa to
Andrew Knott, CEO, commented: “I am discuss opportunities for advance the agenda of sustainability, opportu-
delighted that we are announcing this afternoon nities that may serve to solidify the continent’s
the signature of SPAs to acquire control of the US Investors long-term goals of using it natural resources as
upstream and midstream assets of Exxon and a vital transitional energy source while reposi-
Petronas in Chad and Cameroon. These assets The US-Africa Committee of the African Energy tioning the US as a primary partner for South
have generated billions of dollars of critical tax Chamber’s (AEC) will host a Power Breakfast on Sudan’s energy development and maintaining
revenues for their host countries and free cash- Thursday, December 16, 2021 at The Mayflower Africa’s commitment to the energy transition.”
flow to their owners since the onset of first oil Hotel, Autograph Collection, Washington, DC, African Energy Chamber, December 13 2021

P16 www. NEWSBASE .com Week 50 15•December•2021