Savannah Energy Acquires 100% Stake in SIPEC

Savannah Energy Acquires 100% Stake in SIPEC

Savannah Energy Plc, a British independent energy company, has successfully acquired a 100% stake in Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC)………..READ MORE

The acquisition expands Savannah Energy’s reserves and resource base by approximately 30%, increasing from 151 million barrels of oil equivalent (mmboe) to 197 mmboe.

Key Highlights of the Acquisition:

• Additional 227 billion standard cubic feet (Bscf) of 2C gross gas resources at Stubb Creek Field.
• Increased long-term feedstock gas supply for Accugas customers.
• SIPEC held a 49% non-operated interest in the Stubb Creek oil & gas field, with Universal Energy Resources Limited (a Savannah affiliate) owning the remaining 51%.

Financial Details:

• The transaction was funded through a $60 million Reserve-Based Lending (RBL) facility arranged by The Standard Bank of South Africa Limited.
• Total consideration paid: $35.1 million (including $19.5 million in SIPEC’s cash reserves).
• $2 million deferred cash consideration to be paid in eight quarterly installments.

Expansion Plans

Savannah Energy has announced an 18-month expansion program to increase gross production at Stubb Creek Field from an average of 2.7 kbd (thousand barrels per day) in 2024 to 4.7 kbd.

About Stubb Creek Field

• Located in Akwa Ibom State, Nigeria.
• A producing oil field with significant undeveloped gas resources.
• Estimated 11 million stock tank barrels (MMstb) of 2P gross oil reserves and 515 Bscf of 2C gross gas resources.
• Oil production began in 2015, with cumulative output of 8.1 MMstb as of December 2024.
• Oil is processed on-site and exported via a 25 km pipeline to the Qua Iboe terminal.
• Converted to a 20-year petroleum mining lease under the Petroleum Industry Act (PIA) 2021, effective December 1, 2023.

Savannah Energy’s Outlook

Andrew Knott, CEO of Savannah Energy, described the acquisition as a milestone in the company’s 2025 strategy. He emphasized plans to boost production by nearly 75% over 2025/26 and assured shareholders of further updates on expansion and business priorities.

This move strengthens Savannah Energy’s footprint in Nigeria’s oil and gas sector, aligning with its broader growth and energy security goals.