Savannah Energy Expands Nigerian Operations with Acquisition of SIPEC

British independent energy giant, Savannah Energy PLC, has completed its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC), marking a significant expansion of its footprint in Nigeria’s oil and gas sector.

Announcing the acquisition on Monday, Savannah Energy revealed that the deal has boosted its reserves and resource base by approximately 30 percent, soaring from 151 million barrels of oil equivalent (mmboe) to 197 mmboe.

A key asset in the acquisition is an additional 227 billion standard cubic feet (Bscf) of “2C” gross gas resources at the Stubb Creek Field, ensuring a substantial long-term gas supply for Accugas customers.

SIPEC holds a 49% non-operated interest in the Stubb Creek oil and gas field, which is run by Universal Energy Resources Limited—an affiliate of Savannah Energy with a controlling 51% stake.

The transaction was fully financed through a US$60 million Reserve-Based Lending (RBL) debt facility arranged by The Standard Bank of South Africa Limited. At closing, the total consideration paid stood at approximately US$35.1 million, including US$19.5 million in cash available to SIPEC. Additionally, Savannah Energy will pay a deferred consideration of US$2 million in eight quarterly installments.

Following the acquisition, Savannah Energy has set its sights on an ambitious 18-month expansion plan aimed at ramping up production at the Stubb Creek Field. The goal: to boost gross daily output from an average of 2.7 thousand barrels of oil per day (kbdopd) in 2024 to approximately 4.7 kbdopd.

Located in Akwa Ibom State, Nigeria, the Stubb Creek Field is a producing oil asset with substantial undeveloped gas reserves. As of year-end 2024, the field held an estimated 11 million stock tank barrels (MMstb) of 2P gross oil reserves and 515 Bscf of 2C gross gas resources.

Since commencing commercial production in 2015, Stubb Creek has produced a cumulative 8.1 MMstb. The crude extracted is processed onsite before being transported via a 25-kilometer pipeline to the Qua Iboe terminal. In December 2023, the field was officially converted into a 20-year petroleum mining lease under Nigeria’s Petroleum Industry Act 2021.

Andrew Knott, CEO of Savannah Energy, hailed the acquisition as a landmark achievement in the company’s 2025 growth strategy.

“Our focus at the Stubb Creek Field will now shift to executing the expansion project, which is expected to increase production by nearly 75% over the next two years,” Knott stated. “I look forward to updating shareholders on our progress in the coming months, along with developments on our other key business priorities.”

Knott also extended his appreciation to the Nigerian government for its support in facilitating the deal and welcomed SIPEC employees into the Savannah Energy family.