May 24, 2024
Savannah Announces SPA with PETRONAS for Acquisition of Entire South Sudan Oil and Gas Portfolio
– By Godswill Odiong

Kindly Share

Facebook
Twitter
LinkedIn
WhatsApp

Savannah Energy PLC, the British independent energy company focused on the delivery of Projects that Matter in Africa, is pleased to announce that it has entered into a Share Purchase Agreement (SPA) with PETRONAS International Corporation Limited (PETRONAS) to acquire PETRONAS’ entire oil and gas business in South Sudan (the PETRONAS Assets) through the acquisition of Petronas Carigali Nile Limited (PCNL) (the Transaction), for a total cash consideration of up to US$1.25 billion, subject to certain completion adjustments (the Transaction Consideration). The Transaction Consideration is expected to be financed through a combination of the enlarged Group’s available cash resources and debt. The Transaction is conditional upon the satisfaction of certain conditions precedent including, inter alia, approval of the Government of the Republic of South Sudan, the approval of Savannah’s shareholders and re-admission to trading on AIM taking effect.

Completion of the Transaction would result in the Company acquiring PCNL’s interests in three Joint Operating Companies (JOCs) which operate Block 3/7 (40% working interest (WI)), Block 1/2/4 (30% WI) and Block 5A (67.9% WI), in South Sudan. The PETRONAS Assets comprise of interests in 64 producing fields, with the first production having commenced in 1999. In 2021, the PETRONAS Assets produced an average gross 153.2 Kbopd. Major partners in the JOCs include CNPC, Sinopec, ONGC and Nilepet, the national oil company of South Sudan.

The Transaction constitutes a reverse takeover transaction pursuant to AIM Rule 14 and, accordingly, per the above, will be subject to, inter alia, shareholder approval. Trading in the Company’s ordinary shares will be suspended from trading on AIM with effect from 7.30 a.m. this morning, and will remain so pending publication of an AIM Admission Document setting out, inter alia, details of the Transaction, or confirmation is provided that the Transaction has been terminated. The Company intends to publish an AIM Admission Document in H1 2023, which will contain a notice of the general meeting at which shareholder approval shall be sought, and, following this publication, the Company would seek restoration to trading on AIM of its ordinary shares. Full details on the conditions for the completion of the Transaction will be set out in the AIM Admission Document.

Kindly Share

Facebook
Twitter
LinkedIn
WhatsApp

Copyright @ TheDaily. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheDaily

Leave a Comment

Your email address will not be published. Required fields are marked *

📰 Subscribe to our Newsletter

Scroll to Top