Savannah Energy Acquires Exxon’s 672-Mile Chad-Cameroon Pipeline

(Reuters) — Exxon Mobil Corp. on Friday closed a $407 million sale of its operations in Central Africa's Chad and Cameroon to London-listed firm Savannah Energy Plc.

The deal will see the British firm will take over Exxon's 40% indirect interest in the Chad-Cameroon export transportation system — a 1,081-km (672-mile) pipeline and floating storage and offloading facility offshore in Cameroon. Savannah has operated in Nigeria and Niger.

Exxon has been exiting African operations with declining crude oil production to focus on its massive LNG project in Mozambique and on more lucrative operations in the Americas. It recently retired a platform in Equatorial Guinea and is preparing to leave that country.

Savannah acquired Exxon's 40% stake in the Doba oil project, which comprises seven producing oilfields with a combined output of 28,000 barrels per day (bbl/d), it said in a corporate filing.

The fields were producing 33,700 bbl/d when negotiations were disclosed last year. Exxon's stake was previously estimated to be worth $360 million.

Local energy companies in Africa have been buying mature fields from oil producers shifting to more lucrative projects elsewhere. TotalEnergies SE exited Angola earlier this year. Chevron Corp., Shell Plc and Exxon have retreated from Nigeria.

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}