SOUTH SUDAN: PETRONAS to acquire Savannah Energy’s Entire Oil and Gas Business for up to US$1.25 billion

Savannah Energy PLC has announced that it has entered into a Share Purchase Agreement (SPA) with PETRONAS International Corporation Limited to acquire PETRONAS’ entire oil and gas business in South Sudan through the acquisition of Petronas Carigali Nile Limited, 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 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.

As at 30 June 2022, PCNL reported unaudited total assets of US$994.0 million and net assets of US$492.0 million. For the years ended 31 December 2019-21, PCNL reported average audited profit after tax of US$130.6 million.