Savannah Petroleum had not concluded its takeover of Seven Energy’s assets in Nigeria as of December 14, 2018, less than three weeks to the end of the year.
After signing off on the deals regarding the gas for oil swap with Frontier Oil Limited and the buy-out of minority shareholders in Universal Energy Resources Limited, Savanah has not proceeded as quickly to close out the entire transaction. Frontier Oil is the holder of the Uquo field, whose gas reserves underpinned Seven Energy’s main gas supply business in the domestic market. Universal Energy, a producer of a marginal oil field in eastern Nigeria, was partly owned by Seven Energy.
Savannah claims it is “seeking certain further amendments to the terms of the Transaction, which the Board considers to be in Savannah’s immediate commercial interests and are expected to significantly enhance the Company’s competitive position in Nigeria”. The transaction, initiated 13 months ago, has thus dragged out for much longer than initially contemplated.
Source: Africa Oil + Gas Report