March 19 (LNGJ) - UK company Savannah Energy Plc has signed share purchase deals to acquire controlling interests in the domestic natural gas market of LNG exporter Nigeria. Savannah is taking over all the outstanding share capital of Sinopec International Petroleum Exploration and Production Co. (SIPEC) in Nigeria. SIPEC’s principal asset is a 49 percent non-operated interest in the Stubb Creek oil and gas field in the Akwa Ibom State of Nigeria. The various interests are costing around US$60 million.
“The SIPEC acquisition will secure significant additional feedstock gas available for sale to Savannah’s 80 percent-owned Nigerian gas processing and distribution subsidiary Accugas Ltd,” explained Savannah. “At present, Accugas has eight principal gas customers, including large thermal power stations such as Calabar Generation as well as key industrial players like Lafarge Africa Plc. “With a weighted average remaining contract life of 14 years, Savannah’s natural gas supplies are a critical enabler of the Nigerian economy and currently support approximately 20 percent of Nigeria’s thermal power generation,” the UK company stated.
