On December 9, 2021, British independent energy company Savannah Energy announced the successful acquisition of some of ExxonMobil’s assets in Cameroon and Chad for a total of $407 million. This acquisition comes after the two companies signed a Share Purchase Agreement earlier in the year, in which Savannah Energy acquired a partial interest in the Doba Oil Project in southern Chad and a partial indirect interest in the Chad-Cameroon export transportation system, of 40% each. This includes a Kome Kribi 1 Floating Production Storage and Offloading facility that’s off the shore of Cameroon and a 1,081 kilometer pipeline.
The African Energy Chamber (AEC) has expressed support for the acquisition, stating that it will bring new energy opportunities to North and West-Central Africa. NJ Ayuk, the Executive Chairman of the African Energy Chamber, stated that bringing independent energy companies to Africa will allow the continent to focus on utilizing its natural resources to bring energy to its people, while also demonstrating the potential for success in countries that have previously been overlooked. NJ Ayuk added that during African Energy Week this year, there were discussions about more support for new independent companies that can operate assets from super majors in a sustainable manner.
ExxonMobil’s stake in Chad and Cameroon, previously estimated at $360 million, includes fields that produce upwards of 33,700 barrels per day (bpd). The Doba Oil Project, which is a prospect that includes seven producing oilfields, has a combined output of 28,000 bpd. Savannah Energy is 100% dedicated to bringing reliable and cost-effective energy projects to Africa, and has been unrivaled in its commitment to African energy. The company’s vast portfolio of renewable energy projects, as well as its upstream and midstream portfolio, contribute to its Projects that Matter initiative, which is active in Cameroon, Chad, Niger, and Nigeria.
The AEC has also called on regulators in Chad and Cameroon to approve the transaction quickly in order to boost market and investor confidence. NJ Ayuk noted that when major acquisitions like this take place in Africa, it is important for governments to approve them without delay in order to move Africa forward and eliminate energy poverty. The redenomination of the share capital as enlarged by the transaction was scheduled to take place on December 13, 2022.