Savannah Energy PLC has entered into a share purchase agreement (SPA) with Petronas International Corp. Ltd. to acquire Petronas' entire oil and gas business in South Sudan through the acquisition of Petronas Carigali Nile Ltd. (PCNL) for cash consideration up to $1.25 billion.
Completion of the deal would result in Savannah acquiring PCNL's interests in three joint operating companies (JOCs) which operate Block 3/7 (40%), Block 1/2/4 (30%), and Block 5A (67.9%), in South Sudan. The assets include interests in 64 producing fields and 2021 average gross production of 153,200 b/d of oil. Partners in the JOCs include CNPC, Sinopec, ONGC, and Nilepet, the national oil company of South Sudan.
The transaction is conditional upon satisfaction of certain conditions, including 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.