Africa-focused Savannah Energy announced on Monday that it will purchase Exxon Mobil Corp and Petronas’ upstream and midstream assets in Chad and Cameroon for a total of $626 million as it extends its activities on the continent.
As oil and gas companies reduce their portfolios to focus on more profitable assets and shift to greener energy despite uncertainty about future demand for fossil fuels, dealmaking in the energy sector has picked up momentum.
Savannah, which currently only operates in Nigeria and Niger, said it plans to use a mix of loan and equity to fund both purchases.
The $360 million Exxon deal includes a 40% share in the Doba Oil Project in southern Chad and a roughly 40% indirect investment in the Chad-Cameroon export transportation system, according to Savannah.
The $266 million transaction with Malaysia’s Petronas includes a 35 percent ownership in the Doba project and a roughly 30 percent indirect stake in the Chad-Cameroon transportation network.