Member Info for ZENGAS

The brokers have used a number of oil companies to compare Save to in the past so if you are trying to work out a reasonable valuation Kos and Tlw are 2 strong comparators for Africa. I constantly here this discount to Africa term but look at the facts. Any investment manager must surely see what i do in the greatest emerging value disparity. (Approx 60% held by 5 or so institutions in following this flagged investment strategy now materialising - think about it !)

Figures below as of today and KOS has fallen by around 30% and TLW by almost 42% since the higher oil price (Save down 36%).

KOS
580 mmboe P2. 61K boepd. FCF to end Q3 22 = $320m. Net debt $2.1b (£1.68m).
456m shares X £4.60 = £2.1b m/cap.
EV = £3.78b.
--------

TLW
240 mmboe P2. 62k boepd. FCF guided last month for all 2022 = $250m. Net debt $2.3b (£1.84b).
1.44b shares x 36.8p = £531m m/cap.
EV = £2.37b.
--------

SAVE post deals.
500 mmboe P2. 100k boepd. FCF estimate $500m+. Net debt assumed max $1.5b (£1.2b).
1.4b shares x ??p on relist = £? m/cap .
EV on debt only without a known share price = £1.2b.

Difference of £2.5b valuation to KOS = 175p Save share price for equal valuation.
Difference of £1.17b valuation to TLW = 84p Save share price for equal valuation.

In addition to those valuations, If you think we should still be at a sizeable discount to either example -

1. Save has considerably less debt to service.
2. At least 50% higher production.
3. Should have much higher cash flow yield and 2X that at least of TLW.
4. Has $140m+ FCF not impacted by oil price. (do the others ?)
The Save share price comparable to TLW on 50% higher production, likely 2x FCF should be 50% higher at 125p.

They are all Africa focussed and contain a discount for Africa so Save should still on the above metrics be no different and thus slot into the share price range i've given. Imo the valuation metric has to be a minimum 125p.

Back in June I posted on the valuation of the Tlw/Cne merger.

96k boepd production, 342 mmbo 2P, Net debt $1.5b & M/Cap of £1.84b = EV of £3b.

A few months after the deal was announced, AI reported that the CNE institutions were going to vote against the deal and wanted TLW to stomp up another $500m (£400m) reported in AI.

The deal subsequently did not go through as it was considered too cheap so TLW languishes with $2.1b net debt, 240 mmboe P2, 60k production and a m/cap of £600m = £2.25b EV.

I believe this latest deal would move Save to 500 mmbo P2, 120,000 boepd production and under $1.5b net debt. The £1.84b m/cap attributed to the undervalued TLW/CNE merger would value Save on 1.4b shares fully diluted at 130p but we would have almost 50% more reserves and over 25% approx higher production.

Wiping out $800m of debt attributed to Saves assets would be roughly another 45p so about 175p potential over 24 months. If the CNE institutions were able to block it because it was too cheap by £400m and apply this to Save = another 28p or overall 200p valuation with again 50% more reserves and 25% more production not factored in.

Worst case even if 200m new shares to 1600m f/diluted would be 115p+ 40p debt reduction = 155p and if undervalued by £400m = 25p = 180p overall but still 50% more reserves/25% greater production.

Overall 200p looking very realistic now without Niger factored.

With debt going down and profit re-investment into renewables, perhaps 6-10 GW more achievable for decades end in the planning and a much greater price target.

This was called a once in a generation opportunity and I can see why.

Well it was certainly flagged as potentially on the cards from many posts in the past.

This would certainly take us over well in excess of 100,000 bopped. More production than any of our competitors I mentioned umpteen times before who have some $2b+ of net debt and circa 60k boepd.

Little staffing needed for the Petronas assets and let’s see what the effective date is as there could be 12 months of discount ready to price in to the headline figure. Net debt perhaps 40% lower than the 2 comparators I’ve always used and maybe as high as twice their production at 120,000 boepd.

This from AI posted here on 18/1/22.

" Vitol aims for grand slam with Savannah

The success of the two operations in Chad, which are still subject to the approval of the oil and finance ministries, is however only one step in an even more ambitious plan by the Savannah-Vitol duo. Savannah is also looking with great interest at Petronas shares for sale in South Sudan. The British junior informed Petronas of this during the negotiations in Chad. The assets represent some 75,000 bpd for Petronas, with reserves of 300m barrels.

Vitol could also help Savannah financially in exchange for marketing South Sudanese crude. That would be made easier by the fact that most of Petronas's assets in South Sudan are managed by joint ventures with China's CNPC, which are staffed locally and thus would require the partners to supply little labour."

The emerging renewables should not be overlooked or underestimated because this is taking care of our transistion from hydrocarbons over time and very attractive to institutions to invest/stay invested.
Re Chad yesterday "advancement of our up to US$500m/500 MW of renewable power projects".
The 15/7/22 F/Cap coverage estimates 75% debt financed with 25% from Save.The 250 MW Niger w/farm is estimated to give $30m/yr Ebitda.
For the 750 MW so far on the above financing basis, they give 12.6p valuation. Now that doesn't seem much but when your 'current' hydrocarbon assets should be virtually debt free in 24 months this throws up an enormous re-investment opportunity.
There's a potential industry 310 GW target by the end of the decade. Building out to 3 GW (ie 4X from what is announced so far) on the above financing gives a target estimate of some 50p. Possibly worth $360m+/yr ebitda and these assets are likely to have 25+ years PPAs. Now if you eliminate some of that asset financing with individual future hydrocarbon asset sales you could be left with $4b+ of value in a renewables business alone (but why off load assets given the long term PPA financing likelihood).
Chad-Cameroon/Nigeria should be effectively debt free in 24 months and worth about $2b as is.
One of the best things about Save and which differentiates it from many other O&G Cos is that it has a lot of long term revenue not connected to oil production.
Our production should be over 50,000 boepd this coming year from CC/Nigeria.
Seperate substantial income stream from transporting approx current 125,000 bopd CC pipeline (with 250k capacity). Likewise 3rd party transport should materialise into the significant free pipeline capacity of Accugas.
The production assets have about 5-8 years worth of 2C plus significant exploration to replace any forecast production in that period.
The 7 Chad fields have 3.8 billion bls in place with approx 700 mmbls extracted by this year end. Room to gain some material reserves even if only 40-50 mbbls - insignificant to Exxon/Petronas but would be major value to us.
There will be more assets acquired at reasonable cost and i expect we could reasonably get to 100,000 boepd in 24 months with additional assets and Niger feeding into the pipeline.
When the likes Of Exxon & Petronas sell to us (and reportedly via AI, ENI agreeing to sell Tunisian opps if true) there has to be the likelihood of further major assets from them/other top names choosing us. We will have a much lower hydrocarbon asset debt profile for those assets relative to the other operators i have banged on about for the last year and a half.

Is this the hydrocarbon deal that was to be announced and investors concern for lack of news on it ?

28/11/22

' TUNISIA

ENI suspends asset sale in face of government inertia

Several oil companies that are looking to withdraw from Tunisia are having to contend with government inaction, which has prevented the Italian major ENI, who had found a buyer for its licences, from completing the transaction.

Investments in hydrocarbons are continuing on their downward trajectory in Tunisia (AI, 10/03/21), in large part due to obstacles being created by the government. The Italian major ENI has become the latest company active in the country to suffer from this state of affairs. It recently decided to sell its production permits to the junior Savannah Energy (which is active in Niger, Nigeria and soon in Chad), with Perenco also interested in acquiring them. But according to our information, ENI has now decided to suspend the sale for the time being because it is proving impossible to get the green light from the energy minister, Neila Gonji.

Like the executive as a whole, she has very little room for manoeuvre in her decision-making as the country awaits the likely formation of a new government to deal with the current political crisis. The deal with Savannah therefore looks bound to fall through, just as ENI's abortive sale of its Tunisian assets to Trident Energy (financed by the private equity firm Warburg Pincus) did in 2018 (AI, 03/07/18). At that time, the Directorate-General of Hydrocarbons (DGH) was against the transaction, as it deemed that Trident did not have the financial resources to see through the deal. When contacted, ENI declined to comment on the Savannah sale.'

The case lodged on 11th November by Exxon and Petronas was against Cameroon and nothing to do with Chad.

21/11/22 ' CAMEROON
Why Exxon and Petronas sought arbitration with Yaoundé over Chad-Cameroon pipeline
ExxonMobil and Petronas are caught up in a painful withdrawal from Chad, and are now also facing similar difficulties in neighbouring Cameroon

ExxonMobil and Petronas esteem that they are being badly treated by both Chad and Cameroon, two countries from which they wish to disengage, and have decided to go on the offensive. The US and Malaysian majors are partners in the Cameroon Oil Transportation Co (COTCO) joint venture, which operates the Cameroonian part of the pipeline linking Chad to the port of Kribi. On 11 November, they launched an arbitration against Cameroon at the World Bank's International Centre for Settlement of Investment Disputes (ICSID).

ExxonMobil and Petronas hold 41% and 30% stakes respectively in COTCO. They signed an agreement with Savannah Energy at the end of 2021 to sell their shares in the joint venture, along with their interests in Chad's Doba fields.

But the Cameroonian state, like Chad before it, seems determined to profit from their departure. Chad insists that ExxonMobil and Petronas must pay a substantial separation bonus, which is not provided for in the regulations, while Cameroon wants to tax them. The Cameroonian finance ministry's DGI tax directorate is behind the initiative.

Exxon and Petronas say no
The two oil companies consider that no clause in their contract provides for the payment of a tax in case of departure and thus decided to oppose it. They have engaged two arbitration experts, Philippe Pinsolle and Thomas Voisin from the Quinn Emanuel Urquhart & Sullivan law firm, who specialise in disputes in the energy and hydrocarbons sector. Pinsolle heads the firm's international arbitration practice from Geneva, while Voisin manages its Paris office. Cameroon for its part has hired the 70-year-old French-Cameroonian Gill Dingomé, the long-time lawyer for Cameroon's state-owned Société Nationale des Hydrocarbures (SNH), to represent it.
The Chad-Cameroon pipeline has been operational since 2003 and links the Doba oil fields to the port of Kribi. It transports nearly 40m barrels per year (110,000 bpd) produced in Chad by China National Petroleum Corp (CNPC), ExxonMobil and Petronas.

SNH urges caution
The SNH, deeming that Cameroon does not have a solid case, has been pleading for an amicable resolution of the conflict since the arbitration was launched. The mandatory conciliation period has however not yielded any results. The arbitration procedure could cost millions of dollars, which Cameroon can ill afford, and there is little chance that it will win.
Cameroon has a 5% stake in the COTCO joint venture, alongside the Chadian state's 2.7%, ExxonMobil's 41%, Petronas' 30%, and the Société des Hydrocarbures du Tchad's (SHT) 21%. The Chadian stretch of the pipeline is operated by Chad Oil Transportation Co (TOTCO), which has the same shareholders. '

Updated today - still showing Abrdn as 10.71%.

Very small decrease/increase in a few others either way since i looked on Monday.

Tier, If Chad-Cameroon was the only deal in town yes i'd be worried but a lot more in the pipeline i feel to grow the company and why i'm happy to stick with it regardless of it on the balance of risk.

For 2022 - "Actively review >20 potential inorganic opportunities"

2022 objectives or KPIs

"Close the proposed acquisition of the Chad and Cameroon Assets and integrate with the existing business".

"Deliver at least one material value and free cash flow accretive acquisition".

and next year "Pay a minimum dividend to shareholders of US$10 million in respect of FY 2022".

As for the new WN company formed and why i feel it could potentally be West Nile -

Egypt/Uganda potentially and Egypt has just recently made available large tracts of land available for green energy totalling 60 GW including West Nile. (Egypt is surely in the North Africa region ? with West Nile running down to Uganda and in the news for renewables).

Back in April SAVE were seeking a Development associate for the Green Energy division which i posted here.

"The projects will be located in various African countries, with the first projects located in Niger, & Chad.
Cameroon, Senegal and North Africa are also areas of interest."

https://wp-savannah-2020.s3.eu-west-2.amazonaws.com/media/2022/05/Development-Associate-%E2%80%93-Renewable-Energy.pdf

Another new company set up after Chad procurement 31/3/22.
Savannah Energy RN ltd 16/3/22.
Savannah Energy RC ltd 7/4/22.

Savannah Energy WN ltd incorporated on 1/11/2022.

Well incase anyone forgets, barely 5 weeks ago in the previous article, AI said the "oil minister and Exxon were near agreement on the departure bonus." Todays article doesn't say anything different about the Exxon exit.

In the same article, Glencore rumoured as reportedly paying $30m to exit its Chad oilfields sale just as it was fined £281m in a UK court 5 dyas ago over African bribes. It has set aside $1.5b for cases brought against it by authorities in the US and Brazil. Bearing that in mind it might be worth considering how these so called departure bonuses are to be paid if they are not written into the contracts.

The article 5 weeks ago - "While Petronas does not believe it has to pay a departure bonus to the state, as it was not written into its contract, it may have to change its tune if it wants to withdraw from the country quickly. The only firm to have managed to pull out of Chad recently is Glencore. The Swiss trader sold his local subsidiary Caracal Energy to Perenco by agreeing to pay a bonus - some sources speak of $30m - to the Chadian treasury."

Save has done all on it's part with Petronas and Exxon in Chad.

The difficulty doesn't lie with Save, it lies with the negotiations between the governments and the sellers after the deals were negotiated and signed.

Exxon is endeavouring to leave AFRICA, it has 3 sales going on - Chad, Nigeria and Eq Guinea. Each has their own individual problems not with the buyers but by governments in dealing with the sellers.

Save management delivered on a very complex deal in Accugas and all the multiple associated ownership interests in various pipelines, Uquo and Stubb Creek and has been delivering an average of 34,800 boepd this H2, versus half that when acquired. Other companies including private equity whether anyone wishes to beleive it or not have faced similar and much longer delays to deal completion. While anything is always possible, lets just hope Save see this over the line which appears to be solely in the hands of the sellers/government.

The article today in AI quite lengthy on Exxon dealing with it's sales in Africa, (EQ, Nigeria and Chad) so shortened it here for Saves Chad deal relevance. It had planned to have the deal concluded by 1st July though the long stop date is 9th December from memory.

"ExxonMobil's long and painful goodbye to Africa

ExxonMobil is having a difficult time disposing of its assets on the continent. The main reason for this is that the American major is struggling to capitalise on its contacts with African presidencies.

The firm's boss, Darren Woods, has not made a single trip to Africa since his appointment in 2017, in stark contrast to his famous predecessor, Rex Tillerson, who left the same year to head the State Department under president Donald Trump.

Chad

ExxonMobil's situation is now critical in Chad. It initially appeared that a deal made in late 2021 for Savannah Energy to buy its 40% stake in the Doba fields and the export pipeline to Kribi in Cameroon would quickly lead to the oil major's departure. But a year after the announcement of the $360m deal, the interim Chadian government is still making its approval conditional on the payment of a substantial separation bonus, which is not provided for in the regulations. Even if negotiations on the amount were to be concluded in the next few weeks, the major has already lost more than a year. Since the arrival of the coalition government led by Saleh Kebzabo early last month, the political context has also deteriorated, with several dozen people killed during demonstrations in N'Djamena.
Despite the goodwill of the newly appointed oil minister Djerassem Le Bemadjiel, who wants to find a speedy solution, President Mahamat Idriss Déby's government will not give in easily.
ExxonMobil is not the only firm struggling to escape from Chad. The Malaysian company Petronas, which has agreed to sell Savannah its 25% stake in the same assets for $266m, has also been told it has to pay a severance bonus. It has so far refused to do so.

Equatoguinean travails

The US major is not faring any better in Equatorial Guinea. The storage and production platform on the Zafiro offshore field suffered an accident in September that forced the operator ExxonMobil to reduce production (AI, 12/10/22), which has still not returned to its initial level of 19,000 bpd. The event came after years of under-investment by ExxonMobil, which has signalled its desire to sell its 71% stake in the ageing field since 2019. As in Chad, the Equatoguinean government is dragging out the process.

Seplat debacle

In Nigeria, as in Chad, everything seemed to be going well for ExxonMobil, which was offered a deal for its shallow offshore licences OML 67, 68, 70 and 104 early this year. It had wanted to get rid of them for several years. The bidder, the Nigerian junior Seplat, pledged in February to pay $1.3bn to take 85,000 bpd of production. "

Re long stop date - don't see 9th December long stop date as a deadline.

Petronors initial long stop date was 31/12/20 and was extended multple times by an extra 19 months. Overall the deal took almost 2 years to conclude from it being initially announced.

21 October 2019: Petronor is pleased to announce that it has entered into a sale and purchase agreement (“SPA”) with Panoro Energy ASA (“Panoro”), for its interest in Offshore Mining Lease no. Securing the authorisation and consent is expected to take several months with a long stop date agreed by the parties of 31 December 2020, following which either party is entitled to terminate the agreement.

31 December 2020. The amended long stop date to complete the Transaction is now 30 June 2021.

30 June 2021 Petronor The amended long stop date to complete the Transaction is now 30 September 2021

30 September 2021 Petronor. The amended long stop date to complete the Transaction is now 31 October 2021.

30 December 2021 PetroNor. The long-stop date was extended to the 31 December 2021 per the announcement on 30 November 2021. However, the process of obtaining statutory government approvals continues to take longer than expected.The amended long-stop date to complete the Transaction is now 31 January 2022.

30 June 2022: PetroNor expects conclusion of the outstanding matters and the subsequent closing with Panoro to commence within 14 days. As a consequence, Panoro and PetroNor have agreed to extend the long stop date under the SPA from 30 June 2022 to 15 July 2022.

Oslo, 13 July 2022 - Completion of Purchase of Aje interests from Panoro Energy ASA

Source https://petronorep.com/

Seperately it's reported on 22/9/22 that revenue was 9% higher for oil transported via the Chad-Cameroon pipeline stating 22.76 million bls of oil producued in Chad were transported to the Kribi terminal for the 6 months to end of June which is about 125,000 bopd. https://africaoilgasreport.com/2022/09/in-the-news/cameroon-earns-far-higher-revenue-from-the-chad-cameroon-crude-pipeline/

That is entirely at odds with Trading Economics and their US source.

Just wondering if the Niger delay is actually waiting for export pipeline completion given the closer proximity to the discoveries. AIs article states an over 50km pipeline to the Goumeri tie in point (It's 90km in the CPR) and their sources say it's not the preferred option.

Knowing how AK likes to watch costs and make savings, is it cost effective to spend $17m on a 90km pipeline when there are analogous exploration targets very, very much closer by for SAVE to Gounmeri as well as some chinese fields although those might be significantly depleted since the refinery was built.

AI 28/10/22

' British junior Savannah Energy is eagerly expecting an influx of cash when the reserves in Niger's Agadem oil zone start flowing through a new pipeline - but its projects in Chad are bogged down in delays.
Savannah Energy under chief executive Andrew Knott is keenly awaiting the launch of a new oil pipeline linking the Agadem reserves in Niger with the port of Sèmè in neighbouring Benin. The China National Petroleum Corporation (CNPC) is scheduled to finish work on the line by the second half of 2023. It will carry 90,000 to 100,000 barrels of crude from Agadem per day.
Savannah in recent weeks signed a fresh 10-year deal with Niger to continue exploiting its R1, R2, R3 and R4 blocks, now grouped under a single contract. In return for having these concessions renewed, the company agreed to drill several new wells on block R3 where it has already made a series of discoveries over recent years.

1,000 to 1,500 barrels a day

Sources say Savannah could easily start producing between 1,000 and 1,500 barrels a day at Agadem from late 2023 or early 2024, injecting the oil straight into CNPC's pipeline to Benin. Alternatively, it could offer its crude to the Zinder refinery, which has been operating since 2011. Sources say this is currently not the preferred option, firstly because it would require a new pipeline more than 50 km long to link up to CNPC's existing one between Agadem and Zinder. Secondly, the Zinder Refinery Company (Soraz) is behind on payments to its suppliers. Soraz is jointly owned by CNPC and the Nigerien state. Its main client, the Société nigérienne du pétrole (Sonidep) owes it tens of millions of dollars in arrears. The Agadem-Benin pipeline meanwhile has a major advantage: the export line lies only a few kilometres away from the R3 reserves.
Savannah would welcome a swift launch of production at its oil fields in Niger to offset delays to its projects in Chad. The company has for months been awaiting a green light from Chadian authorities to start operating assets it bought from ExxonMobil and Petronas in the Doba basin. Chad's transitional government is demanding separation bonuses from the two oil majors as a condition of their withdrawal. Such payments are not covered by the firms' contracts nor by the country's oil code '

Another one screened but hasn't fitted the bill.
11/10/21
Tullow veterans line up to revive Sèmè as Zenith snaps at their heels
Several companies are keen to take on Benin's only oil field, which has been dormant since 1998. In the running are two juniors, Baobab Energy Africa, founded by former Tullow energy execs, and Zenith Energy.
More than two decades after production was halted in 1998, will the Sèmè field (Block 1) finally be relaunched? This nagging question has been asked for several years now: Sapetro (owned by former Nigerian defence minister TY Danjuma) was the last to try its luck. It is said to have invested several hundred million dollars without managing to produce a single barrel before it left in 2015. But for the past several months, firms have been quietly negotiating with the Beninese authorities to take over this asset and its estimated 20m recoverable barrels. In production between 1984 and 1998, Sèmè is likely to reach 6,000 to 7,000 bpd for a few years. The work required would be relatively inexpensive because of the brand-new equipment left behind by Sapetro.
In the running
The Ministry of Water and Mines (which is also responsible for oil) had initially invited firms that had already shown interest in the site to bid. At the top of the list was Baobab Energy Africa, founded by former Tullow Oil executives (Gilbert Yevi, Tim O'Hanlon, Robin Sutherland and Shantonu Chundur) and former Azinam boss Daniel McKeown. Yevi, a Beninese national, has been working for years to take over the field, regularly submitting proposals to the government and seeking funding from all quarters. Baobab has been in contact with the Australian exploration company Invictus Energy, headed by Stuart Lake (formerly of African Petroleum and Hess), to establish a possible partnership. But no decision has yet been taken.
Among the other companies in the game are two Nigerian firms, Geospectra Nigeria and Unicorn Energy Resources, the Beninese-Gabonese company Profit Energy, and Gemcorp Capital. The latter is a subsidiary of Atanas Bostandjiev's investment fund Gemcorp, which is very active in the oil sector in Angola (AI, 22/09/21 and 24/03/21).
Finally, Octogone, a company owned by Beninese businessman Razak Saka, has also shown interest in the block. Specialised in bunkering (AI, 17/09/20), Octogone has no experience in oil exploration. The firm has already made contact with a potential technical partner, the Nigerian group Levene Energy, should its application be successful.
Initially interested in Block 1 and invited to submit a bid, the two juniors on the offensive in Africa, Panoro Energy (active in Gabon and Tunisia) and Savannah Energy (in Niger, Chad and Nigeria), ultimately abandoned the project.

The big attraction is the same as Doba and many other fields ie cost of mid-late life mature assets that the majors no longer deem of material interest or worth investing in because they have bigger fish to fry.

These suit juniors and smaller players not to mention Private Equity, Perenco ($5b valuation), Save, Seplat, Petronor and others - take your pick - who have the time and input to deliver longer life from these kind of assets.

The question here for Zafiro is that the PSC expires in 3 years and the state oil company wants to get more involved but this might raise ESG questions and the fact have they enough experience and access to cash. Exxon has 71%, the EQ state 5% and the EQ state oil company 24%. There's about 64 wells shut in.

Possible that a new entrant might take a smaller stake while the state oil co takes more and a new PSC negotiated.

Figures touted were $600m back in 2019 but that will be a lot less now given production fall off/reserves depletion since and during the pandemic touted as lucky to make $300m for Exxon though oil prices have recovered.

Still on the basis of Afentras $4/b P2 and some $22,000 producing barrel it migh be in around the $450m mark and the short PSC will weigh on it. Has the state got the experience to turn it around on its own given they were never an operator ?

Also re Chad - if the closing is late in the year i beleive Save may be going on for $200m of available cash (after CC paid for) from the $400m loan facility which i posted on 15/8/22 and couple that to any adjustment to an effective transaction date.

Some news on the Zafiro field which was reported to be potentially decided on this quarter.

Zafiro halts production as water enters FPU

16/9/22

Zafiro has halted production after water entered the floating production unit (FPU), with the operator evacuating non-essential workers.

The Ministry of Mines and Hydrocarbons passed on the notice from Mobil Equatorial Guinea Inc. (MEGI), which noted the entry of water into the Zafiro Producer vessel.

The ministry said the ship and the associated Jade platform had halted production. The ship is stable, the ministry said. There has been no loss of life and no environmental damage.

MEGI and the ministry have said their top concern is keeping those onboard safe.

An Exxon representative confirmed there had been “a limited water ingress on the Zafiro Producer vessel”. The vessel is safe, the official confirmed, but production is currently stopped.

“We are working diligently to safely resolve the situation and resume full production.”

The Zafiro field is in Block B, west of Bioko Island. The FPU was originally an FPSO, before the operator converted it into an FPU in 2000. The Serpentina FPSO now stores production.

ExxonMobil reported net production of 19,000 barrels per day from Equatorial Guinea in 2021, down from 31,000 bpd in 2020. The company is considering its options on withdrawing from the country.
Exxon has a 71% stake in Zafiro. Talk in the market has named potential bidders as Trident Energy, Savannah Energy and Vaalco Energy. The US supermajor relinquished acreage in Equatorial Guinea in 2021.

Zafiro began producing in 1996, with output peaking at 280,000 bpd in 2004. However, it declined to around 90,000 bpd in early 2020. It is now reported to be below 30,000 bpd. Exxon’s licence expires in 2025.

https://www.energyvoice.com/oilandgas/africa/rigs-vessels-africa/445015/zafiro-exxon-equatorial-guinea/

(Vaalco recently apparently opting instead for Chevrons assets in EQ while the government reportedly not in favour of Trident due to it's french nationality according to AI.)