Savannah snaps up Petronas' South Sudan business
London-listed Savannah Energy has entered a deal to acquire the oil and gas business of Malaysia's Petronas in South Sudan for $1.25bn, the former said on December 12.
The deal will see Savannah take over Petronas' positions in three blocks in South Sudan, comprising 64 producing fields, the first of which came on stream over two decades ago. Last year, Petronas netted 153.2mn barrels/day of oil output from the assets.
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The transaction is expected to be financed from Petronas' existing cash resources and debt. Savannah already has a significant African presence, working in Chad, Niger, Cameroon and Nigeria, but this will mark its first foray in South Sudan, which only gained independence from Sudan in 2011 and has since sought to attract more foreign investment to its oil and gas sector.
Petronas, meanwhile, also has upstream projects in Chad, Egypt, Gabon, Gambia and Senegal.