The Seven Energy Group, a Nigerian oil and gas exploration, development, production and distribution company, has just completed the sale of its assets in an acquisition, by a British firm, Savannah Petroleum Plc.

According to Punch, the Chief Executive Officer, Savanah Petroleum, Andrew Knoot expressed his joy about the completion of the acquisition. He said, “We are very pleased to have completed the Seven Energy Transaction. The deal transforms Savannah into a full-cycle E&P company in West Africa and marks the start of a very exciting time for us.

“We have acquired a business with great people and a strong set of exploration, appraisal, development and production assets which are expected to be highly cash flow generative for the company.”

Seven Energy Group sells assets, as British petroleum firm completes acquisition   

Meanwhile, the pronouncement reportedly came years after the Seven Energy Group had liquidity challenge that prevented the company from meeting its debt obligations. Seven Energy had earlier announced in 2017 that it had entered into a transaction that would lead to the sale of most of its assets to the British petroleum company.

Two years on from the start date (November 2017) of the transaction, an acquisition was completed and announced by Savannah Petroleum in a statement on Friday (November 2019).

[READ MORE: Nigeria loses $41.9 billion to crude oil theft in 10 years]

At a court hearing on 13 November, administrators were appointed to Seven Energy International Limited and yesterday (Thursday) effected the transfer of the Seven Assets to group companies controlled by Savannah and the AIIM.

FCMB ads 300 x 250

Following this step, final long-form documentation with respect to the transaction was executed in accordance with the agreed steps as set out in the implementation agreement, and the transaction has now been completed,” Savannah Petroleum said.

Deal book 300 x 250

However, Savannah Petroleum now has 80% interests in Seven Uquo Gas Ltd, which also holds 40% and 51% participating interests in Seven Uquo oil field and the Stubb Creek field respectively, both in South-East Nigeria through 100% ownership of Universal Energy Resources Limited.

Standard chartered

Savannah Petroleum also bought 80% interests in Accugas midstream business, encompassing a 200mmscfd a Seven Uquo Gas Ltd processing facility, a 260km pipeline network and long-term gas sales agreements with downstream customers.

The deal also reportedly involved African Infrastructure Investment Managers (AIIM) a partner firm of Savannah petroleum acquiring 20% interests in SUGL and Accugas for $54 million.

1 COMMENT

  1. This deal has maintained a troubling silence on the fate of the shareholder of Seven Energy. Are they being given shares in Savannah? In what proportions? What happens, now? I hope someone will respond to this!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.