Savannah Energy in Talks to Buy Exxon’s Stake in Chad, Cameroon Assets

The British oil and gas producer is proposing to buy a 40% operated interest in the Doba oil project in Chad, and a 40% interest in the Chad-Cameroon oil transportation pipeline.

The company’s London-listed shares were last up nearly 7% at 19.25 pence.

Exxon did not immediately respond to a Reuters request for comment. Savannah Energy, which currently only operates in Nigeria and Niger, did not disclose the financial terms in discussion.

Savannah Energy on Wednesday asked for trading in its shares to be suspended until it publishes details of the proposed deal or confirms that the talks have ended.

The Doba oil project produced gross 33,700 barrels of oil per day (bopd) on average, while the Chad-Cameroon pipeline transported gross 129,200 bopd last year, the British company said.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta)