By Victoria Onehi
Savannah Energy PLC, and it subsidiary, Savannah Midstream Investment Limited (“SMIL”), has signed a Share Purchase Agreement (“SPA”) with the national oil company of Cameroon.Société Nationale Des Hydrocarbures (“SNH”),
The agreement is relating to the sale by SMIL and purchase by SNH of 10% of the issued share capital (the “Shares”) in Cameroon Oil Transportation Company S.A. (“COTCo”) (the “Transaction”).
A statement by Savannah Energy reveals that COTCo owns and operates the 903km Cameroon section of the Chad-Cameroon export pipeline, the Kome Kribi 1 floating storage and offloading facility and related infrastructure. The pipeline has a 250 Kbopd nameplate capacity and is the only international export route for oil production in Chad. During 2022, COTCo transported an average of 124 Kbopd of crude oil valued at an estimated US$4.6bn at the prevailing Brent crude oil prices.
In consideration for the sale of the Shares, SNH will pay a cash consideration of US$44.9 million (the “Consideration”) to SMIL. The Consideration, when received, will be used by the Savannah group for part repayment of existing debt facilities.
Completion of the transfer of the Shares from SMIL to SNH will result in SMIL shareholding in COTCo reducing from 41.06% to 31.06%.