The British independent Savannah Petroleum PLC, says that President Muhammadu Buhari has approved the transfer of the ‘Seven Assets’ (Seven Energy International Limited (SEIL)’s entire interests in Seven Uquo Gas Limited, Universal Energy Resources Limited and Accugas Limited), to Savannah Petroleum.
The notification came from the Nigerian Department of Petroleum Resources.
The Consent is subject to the payment of all taxes due in relation to the Transaction within 90 days of the receipt of the approval letter conveying the Consent.
“The receipt of the Consent represents the satisfaction of a significant condition precedent for the Transaction”, Savanah Petroleum explains.
“The principal remaining conditions precedent for the Transaction relate to the execution of long-form documentation in relation to the Accugas debt restructuring and the Frontier Swap, following which the Transaction completion process is expected to commence”.
This completion process will follow pre-agreed steps as set out in the legally binding Implementation Agreement which was signed in February 2019.
The Seven Energy Transaction refers to the planned acquisition by Savannah of the Seven Assets and the restructuring of Seven Energy’s existing indebtedness, specifically relating to the gas for oil swap with Frontier Oil Limited, the buy-out of minority shareholders in Universal Energy Resources Limited, the acquisition of an additional 55-60% interest in Accugas as well as the sale of a 20-25% (less one share) interest in Seven Uquo Gas Limited SUGL and Accugas to African Infrastructure Investment Managers AIIM.