Savannah Energy PLC, a British independent energy company, has finalized its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC). This deal secures Savannah a 49% non-operated interest in the Stubb Creek oil and gas field, strengthening its energy portfolio.
The Stubb Creek field, operated by Savannah-affiliate Universal Energy Resources Limited with a 51% ownership stake, is set to experience significant growth following this acquisition. Savannah’s reserves and resources have increased by 30%, from 151 million barrels of oil equivalent (boe) to 197 million boe, while the deal also adds 227 billion standard cubic feet of 2C gross gas resources at Stubb Creek. This addition ensures long-term gas availability for commercial use.
As part of its strategic expansion, Savannah plans to enhance production at Stubb Creek from 2,700 barrels of oil per day (bopd) to approximately 4,700 bopd over an 18-month period. CEO Andrew Knott expressed enthusiasm about the deal, stating, “The completion of the SIPEC acquisition marks a key milestone for our 2025 strategic objectives. Our focus will now shift to expanding production at Stubb Creek to increase output significantly by 2025/26.”
Stubb Creek, located in Akwa Ibom State, Nigeria, began commercial oil production in 2015 and has produced a cumulative 8.1 million stock tank barrels (MMstb) as of December 31, 2024. The field’s oil is processed on-site before being transported via a 25-km pipeline to the Qua Iboe terminal. In December 2023, Stubb Creek was officially converted into a 20-year petroleum mining lease (PML20) under the Petroleum Industry Act 2021.
Source: Oil Review Africa
