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Savannah Energy acquires 49% stake in Stubb Creek oil and gas field in Akwa-Ibom



Savannah Energy

Savannah Energy has finalized agreements valued at $60 million to acquire Sinopec International Petroleum Exploration and Production Corporation (SIPC) 49% holding in Stubb Creek oil and gas field.

The deal will bring complete ownership of the Stubb Creek oil and gas field in Nigeria to Savannah Energy whose affiliate Universal Energy Resources Limited owns 51% stake in the oil field. This was disclosed in a statement by the company on the latest consolidation of its assets in Nigeria.

Savannah Energy will spend $52 million in cash to acquire a stake in the Stubb Creek oil and gas field from China’s Sinopec, and an additional $9.5 million to purchase shares from Jagal Energy.

According to the statement, the deal will be financed through a debt agreement from Standard Bank of South Africa coupled with existing cash resources of the company.

The company noted that within the next 12months following this transaction, it projects gross production from the field to increase from 2.7 Kbopd to 4.7 Kbopd through what it calls a de-bottlenecking program. Savannah Energy has operations in Nigeria, Niger and Cameroon.