Savannah Energy has signed an agreement to acquire Malaysia’s state energy firm Petronas’ entire oil and gas business in South Sudan for a total consideration of up to $1.25bn in cash.
Under the share purchase agreement (SPA), Savannah will purchase Petronas’ subsidiary Petronas Carigali Nile Limited (PCNL).
Savannah will acquire interests in three joint operating companies (JOCs) that operate Block 3/7, Block 1/2/4, and Block 5A.
Other partners in the JOCs include India’s ONGC and Nilepet, China’s CNPC and Sinopec, and the national oil company of South Sudan.
The assets covered under the transaction include interests in 64 producing fields.
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In 2021, Petronas’ assets in South Sudan reported an average gross production rate of 153,000 barrels of oil equivalent per day.
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By GlobalDataIn a press statement, Savannah Energy said: “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.”
In a separate announcement, Petronas Carigali Sdn Bhd (PCSB) and JX Nippon Oil & Gas Exploration have agreed to collaborate on a proposal to monetise the gas potential within the Bujang, Inas, Guling, Sepat, and Tujoh (BIGST) fields offshore Peninsular Malaysia.
The BIGST fields are located off Kerteh, Terengganu, in eastern Malaysia.
Petronas said that carbon capture and storage (CCS) technology will be key to monetising the fields due to the high levels of CO₂ at the fields.
In a press statement, Petronas said: “The BIGST cluster will also be the catalyst that is expected to spur the development of other high contaminant fields in Peninsular Malaysia, which was not possible prior to this due to the lack of complete CO₂ handling infrastructure.”
