Savannah Petroleum PLC has acquired 100 per cent of the stakes of Sinopec International Petroleum Exploration and Production Corporation in Stubb Creek Field.

Savannah said on Tuesday that it consolidated its Stubb Creek Field interest in Nigeria, signing separate Share Purchase Agreements with Sinopec International Petroleum Exploration and Production Corporation and Jagal Ventures Limited to acquire 100 per cent of SIPEC.

SIPEC has a 49 per cent non-operated interest in the Stubb Creek oil and gas field, and Savannah’s affiliate, Universal Energy Resources Limited, is the 51 per cent owner and operator.

In a statement on its X handle, the firm submitted that the SIPEC acquisition will increase Savannah’s reserve and resource base by approximately 46 millions barrels of oil equivalent, following completion, “with 2P Reserves to increase by 13 per cent to 73.3 MMboe and 2C resources by 41per cent to 130.2 MMboe”.

“Stubb Creek gross production is expected to increase by approximately 2.7 Kbopd to 4.7 Kbopd, following the implementation of a planned de-bottlenecking programme within 12 months of completion of the SIPEC acquisition.

“The SIPEC Acquisition will also secure significant additional feedstock gas available for sale to Savannah’s 80 per cent owned Nigerian gas processing and distribution subsidiary, Accugas Limited, which currently has eight principal gas customers. With a weighted average contract life of 14 years, Savannah’s natural gas supplies are a critical enabler of the Nigerian economy and currently support approximately 20 per cent of Nigeria’s thermal power generation,” the statement read partly.

In 2022, Savannah Energy announced that the company’s 80 per cent indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement with Notore Chemical Industries PLC.

Source- Punch Newspaper.