Savannah eyes ExxonMobil's African assets
AIM-listed Savannah Energy has halted trading in shares as it hold talks with ExxonMobil about buying all the US major's oil assets in Chad and Cameroon, it said June 2. It is in advanced exclusive discussions which, if fruitful, would tilt the company towards oil. Nearly all its revenues currently come from gas which it produces and sells in Nigeria.
The planned reverse takeover includes a 40% operated interest in the Doba oil project and an effective 40% interest in the Chad-Cameroon oil transportation pipeline. Doba produced an average gross 33,700 barrels of oil/day in 2020, while the Chad-Cameroon pipeline transported a gross 129,200 b/d to the coast.
Savannah hopes to publish an AIM admission document setting out details of the proposed acquisition. If the deal goes ahead, its other partners will be Malaysia's Petronas and US major Chevron.