Savannah Energy, a British independent energy company focused on Africa that is developing high-quality, high-potential energy projects in Nigeria and Niger, has announced that it is in advanced exclusive talks with ExxonMobil to buy its entire upstream and midstream asset portfolio in Chad and Cameroon.

The Proposed Acquisition would include a 40% operated interest in the Doba Oil Project, and an effective c. 40% interest in the Chad-Cameroon oil transportation pipeline.

The Proposed Acquisition would be classified as a reverse takeover transaction under AIM Rule 14 if completed on the currently proposed terms, and as a result, the Company has requested that its ordinary shares be suspended from trading on AIM with immediate effect and will remain so until an AIM admission document setting out, among other things, details of the Proposed Acquisition is published.

There is no guarantee that the parties will achieve an agreement on mutually acceptable terms or that the Proposed Acquisition will be completed. As appropriate, the Company will provide updates to shareholders on the Proposed Acquisition’s progress.

In 2020, the Doba Oil Project produced an average gross 33.7 Kbopd and the Chad-Cameroon pipeline transported a gross 129.2 Kbopd.

BACKGROUND

In May 2020, Petronas and Exxon announced that they were working with advisers on a proposed sale of their stakes in the Chad project, which is expected to be worth over $1 billion. Oil fields in southern Chad and a major pipeline transporting crude oil to a marine terminal for exportation in Cameroon are part of the project.