Chad-Cameroon pipeline sees equity switch up
YAOUNDé, April 21, 2023 – Savannah Energy has signed a deal with Cameroon’s NOC for the sale of part of its stake in the Chad-Cameroon export pipeline, the British independent energy company announced on Thursday.
The USD 44.9-million share purchase agreement will see Cameroon’s Société Nationale des Hydrocarbures take 10% of the company’s shares in Cameroon Oil Transportation Company.
Cameroon Oil Transportation Company owns and operates the 903-kilometre Cameroon section of the Chad-Cameroon pipeline, the Kome Kribi 1 floating storage and offloading facility and related infrastructure.
Upon completion, Savannah Energy’s shares in the operation will decrease from 41.06% to 31.06%.
The transaction is expected to be complete in H2 2023 following government approval.
The Chad-Cameroon pipeline has the capacity to transport 250,000 bopd from Chad’s Doba Basin.
The deal follows Chad’s government controversial ruling to nationalise assets belonging to ExxonMobil in March 2023, including interest in the 1,000-kilometre Chad-Cameroon pipeline and 40% stake in Chad’s Doba oil project. The latter comprises seven oilfields with an output of around 28,000 bopd.
Previously in December 2022, ExxonMobil announced it had closed a USD 407 million deal to sell its operations in Chad and Cameroon to Savannah Energy. However, the Chadian government claims final terms were different from what was originally presented.
Savannah Energy has said it plans to seek legal redress for the move, arguing it breaches international conventions.