Savannah Energy buys out partners' 49% stake in Nigeria oilfield

The firm agreed to pay $52 million in cash for a stake in the Stubb Creek oil and gas field held by China's Sinopec International Petroleum Exploration and Production Corporation and $9.5 million for the shares held by Jagal Energy. Savannah's subsidiary Universal Energy Resources Limited, is already the 51% owner and operator of the field.

London-listed Savannah Energy has agreed to buyout its partners' 49% stake in an oilfield in southern Nigeria for a total of $61.5 million, the company said on Tuesday.

Savannah, which has operations in Nigeria, Cameroon and Niger, said the deal would be financed through debt arranged by Standard Bank of South Africa. The firm agreed to pay $52 million in cash for a stake in the Stubb Creek oil and gas field held by China's Sinopec International Petroleum Exploration and Production Corporation and $9.5 million for the shares held by Jagal Energy.

Savannah's subsidiary Universal Energy Resources Limited, is already the 51% owner and operator of the field. The deal will secure more gas available for sale to Savannah's Nigerian gas processing and distribution subsidiary, Accugas Limited, which supplies around a fifth of the gas used by Nigeria's power plants.