Savannah Wins Approval For Nigerian Deal

London-traded Savannah Petroleum has won approval from Nigerian authorities to acquire assets from local indebted independent Seven Energy.

Savannah agreed in 2017 to buy Seven’s entire stakes in the producing Uquo and Stubb Creek oil and gas fields, as well as a 20% interest in its Accugas midstream subsidiary, for $270mn. That purchase has now been cleared by Nigerian president Muhammadu Buhari, Savannah said in a statement on August 19.

The approval is “a significant milestone” for Savannah, its CEO Andrew Knott commented. The company now needs to finalise an oil-for-gas swap at the Uquo field and debt restructuring plans at Accugas in order to close the deal.

Savannah operates acreage in both Nigeria and Niger, boasting a 38,000 boe/day production capacity. Beyond Uquo and Stubb Creek, Seven owns interests in several other fields in southeast Niger Delta region as well as exploration acreage in the Anambra basin. Through Accugas, it sells, markets, processes and distributes gas on the domestic market.

Savannah had expected to wrap up the purchase of Seven’s assets last year.