Savannah Energy has completed the acquisition of Sinopec International Petroleum Exploration and Production Company (SIPEC), increasing its oil and gas reserves by 30%. The deal includes a 49% interest in the Stubb Creek Field, with plans for significant production expansion, targeting a near 75% increase in output by 2025/26.
Savannah Energy, a British independent energy firm, has finalized the acquisition of Sinopec International Petroleum Exploration and Production Company (SIPEC), marking a significant milestone for the company. The acquisition increases Savannah’s oil and gas reserves by 30%, bringing its total reserves to approximately 197 million barrels of oil equivalent (mmboe), up from 151 mmboe.
A major asset in this deal is SIPEC's 49% non-operated interest in the Stubb Creek oil and gas field in Akwa Ibom State, Nigeria. This field, operated by Universal Energy Resources Limited, a Savannah affiliate, has valuable undeveloped gas resources. The acquisition includes an additional 227 billion standard cubic feet (Bscf) of 2C gross gas resources, which will provide long-term feedstock gas for Accugas customers.
The transaction was financed through a US$60 million Reserve-Based Lending debt facility from Standard Bank of South Africa, and Savannah paid US$35.1 million for the deal. A further US$2 million will be paid in quarterly installments over the next two years.
Savannah Energy has outlined ambitious plans for the Stubb Creek Field, targeting an increase in gross production from 2.7 thousand barrels per day (kbdopd) in 2024 to 4.7 kbdopd by 2025. CEO Andrew Knott expressed confidence that this acquisition would drive the company's growth and production in the upcoming months.
