UK-based independent oil and gas company Savannah Energy has terminated its planned $1.25bn (£985.36m) purchase of Petronas’ oil and gas business in South Sudan.
The deal, initially announced in December 2022, could not be closed on the terms first envisaged, leading to its cancellation.
In a statement, Savannah said: “Despite the substantial efforts of all parties since that time, it has not been possible to complete the proposed transaction on the envisioned terms and the original sale and purchase agreement is terminated.”
Separately, Malaysian state-backed energy company Petronas announced that its subsidiary Petronas Carigali Nile Limited (PCNL) will withdraw from South Sudan operations.
This decision aligns with the company’s divestment strategy and the broader energy transition.
“The decision was made following a two-year period of divestment initiatives in alignment with Petronas’ long-term investment strategy amid the changing industry environment and accelerated energy transition,” Petronas’ statement read.
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By GlobalDataThe now-terminated deal included interests in three joint operating companies (JOCs) that manage the Block 3/7, Block 1/2/4 and Block 5A oil blocks in South Sudan.
Partners in these JOCs include companies from India, China and South Sudan’s national oil company.
The assets involved in the transaction span 64 producing fields, with a reported average gross production of 153,000 barrels of oil equivalent per day in 2021.
Despite the termination, Savannah said it remains in discussions for a potential alternative transaction regarding the Petronas assets.
Any new deal or return to the original terms would be considered a reverse takeover under AIM Rule 14, requiring shareholder approval.
Earlier this year, Savannah, which is listed in London, agreed to acquire a 49% interest in the Stubb Creek oil and gas field in Nigeria, increasing its stake to 100%.
