NJ Ayuk Excited About the Recent Acquistion of Petronas by Savannah Energy
Savannah Energy, an independent company based in Great Britain, announced that it had reached a deal with Petronas, a South Sudan oil and gas company, in December 2022. The $1.25 billion-dollar acquisition gives Savannah Energy the exclusive right to work on producing oil fields in the Malaysian state.
Chairperson of the African Energy Chamber Supports the Acquisition
NJ Ayuk, the executive chairperson of the African Energy Chamber (AEC) voiced his approval of the deal between Savannah Energy and Petronas shortly after the two companies made the announcement. He feels that South Sudan will benefit from the deal in several ways, including:
- Ability to save declining oil fields
- Creation of additional jobs
- Greater opportunities for women
- More local content
- Sustainable energy development
Ayuk added to his comments about the benefits for South Sudan when he stated that Africa will now be able to make full use of its natural resources to bring energy to everyone living or doing business in the country. He also pointed out that the same discussion came up during African Energy Week, held in October 2022. Several other participants at that summit discussed bringing more independent oil and gas companies to Africa and brainstormed ways to better support their efforts.
Additional Details About the Deal Between Savannah Energy and Petronas
Savannah Energy and Petronas agreed to a Share Purchase Agreement that allows the former to obtain the complete oil and gas portfolio of the latter. The agreement provides Savannah Energy with the subsidiary of Petronas, which gives the company controlling interest in three joint operating companies. These include China National Petroleum, Nilepet in South Sudan, and the Oil and Natural Gas Corporation located in India.
Petronas maintained control of 64 oil producing fields in South Africa before the acquisition by Savannah Energy. The joint operating companies currently have a gross output of 153,000 bopd. The government of Sudan and the shareholders of Savannah Energy must still approve the deal, which Ayuk anticipates happening soon.
The acquisition of Petronas and its three joint operating companies comes shortly after Savannah Energy purchased the upstream and downstream portfolios of ExxonMobil in Cameroon and Chad. NJ Ayuk sees Savannah Energy as being in an excellent position to make energy more secure and affordable for all Africans.