Savannah Energy PLC, a British independent energy company, has entered into a share purchase agreement with PETRONAS International Corporation Limited to acquire PETRONAS’ entire oil and gas business in South Sudan. This came through the acquisition of Petronas Carigali Nile Limited at US$1.25 billion, subject to certain completion adjustments.
The transaction consideration is expected to be financed through a combination of the enlarged group’s available cash resources and debt. The transaction is based on the satisfaction of certain conditions precedent including the approval of the Government of the Republic of South Sudan, the approval of Savannah’s shareholders and re-admission to trading on AIM taking effect.
Completion of the transaction would result in the company acquiring PCNL’s interests in three joint operating companies, which operate Block 3/7 (40% working interest), Block 1/2/4 (30% WI) and Block 5A (67.9% WI), in South Sudan. The PETRONAS Assets comprise of interests in 64 producing fields, with first production having commenced in 1999.
In 2021, the PETRONAS Assets produced an average gross 153.2 Kbopd. Major partners in the JOCs include CNPC, Sinopec, ONGC and Nilepet, the national oil company of South Sudan.
The transaction constitutes a reverse takeover transaction pursuant to AIM Rule 14 and, accordingly, per the above, will be subject to shareholder approval.
Trading in the company’s ordinary shares will be suspended from trading on AIM with effect from 7.30 am Monday, and will remain so pending the publication of an AIM admission document setting out details of the transaction, or confirmation is provided that the transaction has been terminated.
The company intends to publish an AIM admission document in H1 2023, which will contain a notice of general meeting at which shareholder approval shall be sought, and, following which publication, the company would seek restoration to trading on AIM of its ordinary shares.
Full details on the conditions to completion of the transaction will be set out in the AIM admission document.
Further information on the PETRONAS Assets
The following information is included in accordance with the disclosure requirements of Schedule Four to The AIM Rules for Companies: As at 30th June 2022, PCNL reported unaudited total assets of US$994.0 million and net assets of US$492.0 million.
For the years ended 31 December 2019-21, PCNL reported average audited profit after tax of US$130.6 million.
