UK's Savannah Energy clinches $626 mln Africa deals with Exxon Mobil, Petronas

A pump jack operates in front of a drilling rig owned by Exxon near Carlsbad
A pump jack operates in front of a drilling rig owned by Exxon near Carlsbad, New Mexico, U.S. February 11, 2019. REUTERS/Nick Oxford//File Photo

Dec 13 (Reuters) - Africa-focused Savannah Energy (SAVES.L) said on Monday it would buy the upstream and midstream assets in Chad and Cameroon of Exxon Mobil Corp (XOM.N) and Petronas (PGAS.KL) for a combined $626 million as it expands operations in the continent.

Dealmaking in the energy sector has gathered steam as oil and gas firms trim their portfolios to focus on more profitable assets and transition towards cleaner energy amid uncertainty over future demand for fossil fuels.

Savannah, which currently operates only in Nigeria and Niger, said it intends to fund both transactions through a mixture of debt and equity.

The Exxon transaction is for $360 million and involves a 40% interest in the Doba Oil Project in southern Chad and an about 40% indirect stake in the Chad-Cameroon export transportation system, Savannah said.

The deal with Malaysia's Petronas is worth $266 million, with a 35% stake buy in the Doba project and an about 30% indirect holding in the Chad-Cameroon transportation network.

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Ramakrishnan M.

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