Member Info for TrustILie

Savannah Energy from UK has entered into an agreement with PETRONAS to acquire PETRONAS Carigali Nile Limited, the subsidiary of PETRONAS managing the company’s business interest in South Sudan through three main Exploration and Production Sharing Agreements (EPSAs) in the following companies:

1.Dar Petroleum Company (DPOC) operating blocks 3&7 in partnership with CNPC and SINOPEC from China, and NILEPET (The national petroleum Company of South Sudan). https://darpetroleum.co/ )

2.Greater Pioneer Operating Company (GPOC) operating blocks 1 and 4S (http://gpocss.com).

3. SUDD Petroleum Operating Company (SPOC) operating block 5A. (www.spocss.com)

Export Pipelines and Marine Terminals:

1. Block 1,2&4 Pipeline: 1610 km, 28 inch, with 6 pump stations, Capacity 500 kbopd and 1 Marine Terminal 1.8 MMSTB Capacity

2. Block 387 Pipeline: 1472 km, 32 inch with 6 pump stations, Capacity 750 kbopd and 1 Marine Terminal 3 MMSTB Capacity.

3. Block 6 Pipeline is 716 km, 24 inch with 6 pump stations, Capacity 250 kbopd to Khartoum Refinery.

4. Total pipeline 3700 km with a Capacity of 1.5 million bopd and Marine Terminal storage capacity of 4.8 million barrels.

Central Processing Facilities (CPF) :
1. Heglig CPF: 350 kbopd
2. Jabalyn CPF: 300 kbopd
3. Fula CPF: 200 kbopd
4. Total: 850 kbopd

Refineries:
1. Khartoum Refinery: 95,000 BOPD (plans to upgrade)
2. Obeid Refinery: 15,000 BOPD
3. Port Sudan Refinery: To be Refurbished
4. Total domestic refining capacity: 110,000 bopd

If we successfully complete the acquisition the sheer size and scale of production and exploration growth that can be achieved is immense especially with the infrastructure that is currently in place it eclipses the chad acquisitions quite easily a company game changer if Andrew can bring it over the line...........

Merry Christmas all just thought I would post the above to wet your appetite on what's to come in the event of a successful deal...........

Based on our valuation the downside is very minimal even if the chad deal was null and void but the upside alongside the south sudan deal is massive....... if it comes through So I for one am fully cognisant of the risk v reward here based on out last suspended price of 26p............

Worst case scenario if both deals were to fall through AK will quickly wrap up the debt restructure and as the pipeline in Niger is completing next year get drilling in Niger which itself would add some value on top of our suspended price, so there is plenty of corporate activity to underpin our current valuation.........

Brilliantly and eloquently summarised Komakino, a lot on here are catastrophizing and talking about sp in the early teens which is utter nonsense and delusional I guess a few are enraged as it's not gone as smooth as expected and also another rto has agitated a few and caused unrest as african deal making is not for the faint hearted, they forget that before the chad deal we were suspended at 19.25p but our Nigerian business has grown by 50%+ since and net debt is down as well, as for the Exxon chad deal yes agreed between, Exxon, Savannah, and lawyers bracewell and co they clearly envisaged a scenario such as this hence the $15m discount on closing as for the chad government taking legal route through the courts seems more certain now that they have no claim otherwise that would have been their first port of call otherwise.............................

Let's get the new admission document released get South Sudan watertight and sealed.......................

We all knew what AK strategy was it's not like he has hidden his intentions so let's trust him to get things over the line and let's be patient.......

Apologies here is the source, let's hope things are wrapping up quickly for approval. here is the Malaysian delegation meeting with South Sudan ministers, pictures as well in front of the christmas tree ;) they look fairly chummy lets hope that we get that deal approved asap.......

https://twitter.com/BernamaTV/status/1602889404418138112

The South Sudan ministry were in Malaysia last week for 4 days to discuss exit terms with Petronas so we could hear some news first couple of weeks of Jan of the outcome. As far as I can tell the Sudanese ministry and Petronas share strong relations so they are likely to part much more smoother than in chad, they also met with the Malaysian prince and former ceo of Petronas.

“The Viceroy of Perlis Tuanku Syed Faizuddin Putra Jamalullail agreed to take the time to hold an introductory meeting with two Ministers from the country of South Sudan at the Equatorial Hotel Kuaia Lumpur recently.

Minister of Presidential Affairs, Dr. Barnaba Marial Benjamin and his Petroleum Minister Puot Kang Chol were introduced to His Highness Tuanku Raja Muda by the President of SUDD Petroleum Operating Co. (DOPC) Ltd., Hj Mohamad Isham Monday.

The delegation from South Sudan was in Malaysia for four days for a working visit session.

Also present accompanying Tuanku Raja Muda was Datuk Mohd Ibrahimnuddin Mohd Yunus who is the former Managing Director and Chief Executive Officer of Petronas Dagangan Bhd”

Well if that's the case than we should receive an rns tomorrow morning although could be early to speculate. Besides what happens to the asset if we leave does it go back to Exxon, does the government takeover what about the Exxon loan facility a lot to work out or perhaps they already envisaged the scenario and had contingencies in place for both Exxon side and savannah side already lets see

Perhaps Eni Tunisia acquisition has been revived...............

Interesting company name change on 15th December 2022 from SAVANNAH ENERGY CHAD PROCUREMENT LIMITED to SAVANNAH ENERGY RT LIMITED............

https://find-and-update.company-information.service.gov.uk/company/14014394/filing-history

I don't think we should personally I don't think savannah would take drastic actions unless production came to a complete halt and a force majeure was issued on operations. As the production remains uninterrupted so far I think we will play the long game and perhaps just not proceed with investing and improving production in the meantime, but as long as revenues are being attributed to us and Exxon facility is being paid I believe we will carry on in the same manner, and as it looks like they have only targeted savannah employees at executive level, they haven't taken any action thus far against employees that we inherited from Exxon that run things on the ground which affects production, so I believe Savannah will proceed in similar manner which is keep calm and carry on.

Also as I said African politics is more than what meets the eye, is the oil minister Djerassem le Bemadjiel playing both sides i.e we know that he was always the one trying to mediate thus so far and the pressure was actually coming from Tahir Hamid Nguilin the finance minister. Either his hand was forced or he is taking the action to make it seem like he has done everything in his power and thus also keep him still in government if chad don't end up getting savannah out and we continue as we are, he can say he tried his best.

How 7 months can change when Andrew and oil minister sign renewable deals, clearly there must be dialogue between the 2 for all the actions being taken, I would like to hope that Andrew was always kept in loop secretly as to the chad ministry actions prior to enforcement so Andrew could take the necessary step to ring fence and protect savannah. Also as far as i understood before the Djerassem le Bemadjiel was the only one who was willing to be sensible to come to an agreement

https://www.pv-tech.org/savannah-energy-pens-deal-to-develop-up-to-400mw-of-solar-pv-in-chad/

I find in interesting that they have targeted savannah executives through deportation clearly trying to make life difficult for the moment, it makes me think that they have got no legal grounds or claim on the actual deal itself hence they can't challenge through the courts otherwise why be petulant and target at operational level but specifically Savannah employees, I also feel that if they really wanted to they could halt all operations on Doba but then again that would impact them to, their actions are clearly targeted and specific however they are also trying to be careful that they dont get burned. If they really wanted to throw the book take us and Exxon to court but as said they have no grounds to do so or halt production entirely but that is not in their interest.

Possible outcomes :

1) come to some sort of financial agreement similar to what was being offered before $15-$20 m and not the $165m that they were after and settle and move on.
2) Savannah seeks a quick exit where they sale to Perenco ensuring the financial cost of the deal since inception with Exxon remains neutral i.e savannah has not lost any money since striking deal.
3) Exxon mobil will be taking a keen interest to as we have a financing facility with them so our ability to operate impacts them as well, I am sure savannah, exxon, bracewell would have mapped potential scenarios on how this would play post exxon exit and i am sure they are smart enough to know all the legal actions at their disposal in event of such circumstances i.e deportation of employees.

My only ask of Andrew now is before the admission document and re-list sort this out for the better or worse, and please please please get government approval for south sudan prior to re-list as I would hate for us to end up in a similar place in south sudan as well, it would basically put 2 years of work down the drain if these acquisitions don't come to any fruition.

Chad acquisition getting messier savannah executives told to evacuate and being deported from chad

https://t.co/D7tpAQgoOY

On Wednesday, December 21, the Minister of Oil and Energy, Djerassem Le Bemadjiel made an unexpected descent to Komé where 8 expatriate employees of Savannah Energy, the buyer of ExxonMobil's assets, were urgently brought back to N'Djaména in order to be deported.

The Government of Chad criticises Savannah Energy for continuing the work, "despite the express objections and the challenge to the acquisition of ExxonMobil's assets on December 13" by the latter. The continuation of work in Komé and N'Djaména of Savannah Energy damaged Djerassem Le Bemadjiel, who raided Komé to inform Savannah Energy executives of their obligation to leave the country.

The day before this unexpected descent, on December 20, the Minister of Public Safety and Immigration, General Idriss Dokony Adiker, issued an order to cancel the entry visa and residence card of the eight Savannah Energy employees, including Aubin de Blanpré, deputy group treasurer and engineers Grant Mackenzie and Ruxandra Zanfirescu. The latter are required to leave the national territory within a period not exceeding 48 hours, i.e. this December 22, according to the judgement.

Savannah had been negotiating for many months the acquisition of ExxonMobil's 40% in the seven production fields of Doba as well as in the Chad-Cameroun oil pipeline. The last executives of the American major, for their part, have already left Chad by plane on Friday, December 9.

I would be interested to know how our $1.25bn acquisition compares with the proposed acquisition of Mobil that Seplat were about to do early this year:

Seplat Energy Plc, has entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1,283 million plus up to $300 million = $1,583

Producing 95 kboepd (W.I.) in 2020(92% liquids)
o 186% increase in production from 51 kboepd to 146 kboepd = 95k bopd +
o 170% increase in 2P liquids reserves, from 241 MMbbl to 650 MMbbl = 409 MMbbl +
o 14% increase in 2P gas reserves from 1,501 Bscf to 1,712 Bscf, plus significant undeveloped gas potential of 2,910 Bscf (JV: 7,275 Bscf)
o 89% increase in total 2P reserves from 499 MMboe to 945 MMboe[1] = 446 MMbbl+

I will be interested to see how our deal measures up in terms of production, but more importantly reserves and exploration upside once the admission document is released ...............

One thing I am slightly surprised about is Nigeran business has been really strong, we have strong relationships at all levels of government and we have demonstrated to be such a reliable partner by our operational excellence. It's surprised me a little that we haven't gone for another Nigerian producing asset I am sure there must be plenty on offer in Nigeria as well obviously just a thought..............

EITI framework - as silly as it sound it improves our overall approach to things and what do you know Chad is country that is part of EITI framework guidelines. Through little steps Andrew is taking he will make our Exxon acquisition hard to contest on any domestic or international courts, as we all know our acquisition was done to the letter of law, meaning our evidence is far stronger. This further makes me believe that our Exxon 40% stake in Doba is watertight so I am pleased with this, I believe chad is secured now let's get south sudan over the line.

https://eiti.org/countries

wrong link here is the correct one

https://energychamber.org/independent-oil-companies-becoming-increasingly-larger-presence-in-africas-oil-and-gas-industry/

Good coverage by African Energy Chamber promoting deals made in africa by independent oil companies.

https://www.africaintelligence.com/central-africa/2022/12/19/perenco-takes-on-the-role-of-banker-for-sht-in-petronas-doba-takeover,109874901-art

Clearly SHT don't have the technical skillset to be operator it's got Perenco underhand tactics and finger prints all over it. Well if the Cemac, well if Perenco / SHT end up with the Petronas stake than i think that will bring this whole thing to a close. if we had trouble getting cemac approval for petronas stake than I can't see us being shaken out of our exxon stake as i am sure they would need Cemac council approval as well, if they had concerns with us taking on the petronas stake it should work the same the other way round

As expected I don't think chad can do anything about our exxon stake that was just them treating but looks like it was a ploy to at least end up with Petronas share of 30% in Doba. I reckon Petronas will probably agree to it seen as they want to leave quickly and I believe chad government will back off

https://www.africaintelligence.com/central-africa/2022/12/19/perenco-takes-on-the-role-of-banker-for-sht-in-petronas-doba-takeover,109874901-art

I would like to think that the SS Deal would wrap up much quicker than the Chad deals, hoping that all the prior formalities and dialogue between the government, savannah and Petronas have been encouraging and they have been given guarantees on deal closure which prompted the SPA, I am sure there will be lessons learned from chad experience to ensure that the SS deal is done swiftly with government on board from the get go. I am quietly optimistic about SS hopefully we here the finer detail in the next few weeks which adds more context to the deal and the stage we are at in terms of bringing it home.