Savannah buys out partners in Nigeria field for $61.5 million

Savannah Energy has bought out the 49% of shares in Nigeria’s Stubb Creek onshore oil and gasfield held by partners for USD 61.5 million, the UK independent announced on Tuesday.

Sinopec International Petroleum E&P Company Nigeria – which is owned 75% by Sinopec International Petroleum E&P and 25% by local player Jagal Ventures – held the 49% stake.  Savannah paid USD 52 million for Sinopec’s shares in the split and USD 9.5 million for Jagal’s shares.

The deal will add 46 million boe to the company’s resources.

It was undertaken with financing from Standard Bank of South Africa, the company said.

Savannah’s fully owned subsidiary Universal Energy Resources Limited will now hold a 100% stake in the field, allowing the company to source more natural gas for its 80%-owned local gas processing and distribution subsidiary, Accugas.

Savannah plans a debottlenecking programme at the Stubb Creek field that will raise production from 2,700 bopd to 4,700 bopd in the year following completion of the deal.

Africa-focused Savannah Energy is active in Nigeria, Cameroon and Niger.