In a strategic move that reshapes the landscape of Nigeria's energy sector, British independent energy powerhouse Savannah Energy PLC has finalized its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC). This isn't just another acquisition; it's a calculated leap, securing a 49% non-operated interest in the prized Stubb Creek oil and gas field, and effectively solidifying Savannah's foothold in one of Africa's most vital energy hubs.

This acquisition transcends mere financial figures. It's about access: access to a bolstered resource base, a future-proof gas supply, and a significant role in Nigeria's energy narrative. The Stubb Creek field, operated by Savannah's affiliate, Universal Energy Resources Limited, now stands as a testament to the company's ambitious vision. This acquisition catapults Savannah's total reserves and resources by a remarkable 30%, soaring from 151 million barrels of oil equivalent (boe) to a robust 197 million boe. Moreover, the addition of 227 billion standard cubic feet (bcf) of 2C gross gas resources ensures a reliable, long-term feedstock, a critical component for future commercial endeavours.

Andrew Knott, CEO of Savannah Energy, articulated the significance of this deal, emphasizing its pivotal role in the company's 2025 strategic priorities. But the real story lies in the tangible impact of the Stubb Creek expansion plan. The field, currently producing 2,700 barrels of oil per day (bopd), is poised for a dramatic transformation, with production expected to surge to 4,700 bopd by 2025/26 – a near 75% increase. This isn't just about numbers, it's about unlocking the field's full potential, ensuring greater energy security for Nigeria, and generating substantial financial returns for Savannah's stakeholders.

Located in Akwa Ibom State, the Stubb Creek field boasts a proven track record, having been in commercial oil production since 2015, with cumulative production reaching 8.1 million barrels by the close of 2024. The field's recent conversion to a 20-year petroleum mining lease (PML20) under Nigeria’s Petroleum Industry Act (PIA) 2021, effective December 1, 2023, underscores its long-term operational stability. This regulatory milestone provides Savannah with the confidence and security necessary to invest heavily in the field’s expansion.

The acquisition isn't merely a transactional event; it's a strategic alignment with Nigeria's energy future. By increasing its reserves and securing a dependable gas supply, Savannah is not only enhancing its operational footprint but also contributing to the country's energy self-sufficiency. The expansion of the Stubb Creek field is expected to yield substantial operational and financial benefits, reinforcing Savannah's position as a key player in the West African energy landscape.

This move signifies Savannah's commitment to long-term growth and its ability to navigate the complexities of the Nigerian oil and gas sector. The Stubb Creek field's expansion is not just about boosting production; it's about creating a sustainable energy future, fostering economic development, and ensuring a reliable energy supply for Nigeria and the wider region. As Savannah Energy executes its ambitious plans, it solidifies its role as a driving force in the evolving African energy narrative.