A new era with Savannah Energy’s acquisition of ExxonMobil’s upstream and downstream assets in Chad and Cameroon

Savannah Energy announced the completion of its acquisition of ExxonMobil’s portfolio of upstream and downstream assets in Chad and Cameroon.

The African Energy Chamber (AEC) supports the acquisition by Savannah Energy, a UK-based independent energy company focused on Africa, of ExxonMobil’s entire portfolio of upstream and downstream assets in Chad and Cameroon. The sale closed on December 9 for $407 million.

The announcement follows Savannah Energy and ExxonMobil signing a share purchase agreement in 2021, which allowed the listed company to acquire a 40% stake in the Doba oil project in southern Chad, as well as a 40% indirect stake in the Chad-Cameroon export transport system, which includes a 1,081 km pipeline and floating production facility. storage and unloading Kome Kribi 1, off the coast of Cameroon.

“The African Energy Chamber wholeheartedly supports this monumental transaction, which will undoubtedly serve to bring new energy opportunities to North Africa and West Central Africa,” said NJ Ayuk, Executive Chairman of ECA, adding that “the arrival of independent energy companies in Africa will allow the continent to focus on providing energy to its people by harnessing its natural resources, while demonstrating the lucrative prospects in countries that have been neglected until now. During Africa Energy Week this year, we saw discussions move towards increased support for new independents who can exploit the assets of supermajors in a sustainable way. »

Ayuk added that the Chamber calls on regulators in both countries to approve the transaction quickly and without delay to boost market and investor confidence.

“This is a huge transaction. When IOCs sign major acquisitions in Africa, it is appropriate for governments to approve them without haste. This is how Africa will progress and energy poverty will disappear for good,” Ayuk noted.

ExxonMobil’s interest in Chad and Cameroon, previously estimated at $360 million, includes fields producing 33,700 barrels of oil per day (bpd), with the Doba oil project alone – a prospect that includes seven producing oil fields – boasting a combined production of 28,000 bpd.

Savannah Energy, committed to delivering reliable and cost-effective projects in Africa, is second to none in its commitment to African energy. The company’s extensive portfolio of renewable energy projects, as well as its upstream and downstream portfolio, contribute to its Projects that Matter initiative, which is active in Cameroon, Chad, Niger and Nigeria.

The redenomination of the share capital – as expanded by the transaction – is scheduled to take place on December 13, 2022.


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