Africa-focused British independent energy company, Savannah Energy, has completed the acquisition of oil and gas supermajor, ExxonMobil’s entire upstream and midstream asset portfolio in Chad and Cameroon. The deal was closed on 9 December at a cost of $407 million.
The announcement follows a Share Purchase Agreement, signed in 2021, between Savannah Energy and ExxonMobil, resulting in the acquisition by the British-listed company of a 40% interest in the Doba Oil Project in southern Chad, which includes interests in the Miandoum, Bolobo, Kome, Moundouli, Nya, Maikeri, and Timbre producing fields; as well as a 40% indirect interest in the Chad-Cameroon export transportation system, which comprises a 1,081km pipeline and the Kome Kribi 1 Floating Production Storage and Offloading facility, offshore Cameroon.
“In Chad, our focus will immediately turn towards making the investments we believe the Doba Oil Project needs to significantly increase production volume from current levels and the advancement of our up to $500 million/500 MW of renewable power projects,” stated Savannah Energy CEO, Andrew Knott, adding, “We expect our investments in these projects to provide significant increased tax revenues and electricity access for the people of Chad. In Cameroon, we hope to see the Cameroon Oil Transformation Company and Tchad Oil Transformation Company businesses to grow further over the course of the coming years through additional third-party customer throughput volumes.”
The combined estimated reserve base of the fields in Chad are currently projected at 142.3 million barrels, while the gross production rate of the Doba oil project is expected to reach up to 28,000 barrels per day (bpd) as an average for 2022. Meanwhile, the Chad-Cameroon pipeline boasts a nameplate capacity of 250,000 bpd with an estimated throughput of 124,000 bpd, derived from over 15 fields, for 2022.
The acquisition of ExxonMobil’s upstream and midstream assets in Chad and Cameroon by Savannah Energy falls in line with the company’s Projects that Matter initiative, a program that seeks to deliver sustainable energy and socioeconomic development to Cameroon, Chad, Niger, and Nigeria. ExxonMobil’s stake in Chad and Cameroon was previously estimated at $360 million.