Asset A&D

Perenco Acquires Portfolio of Gabonese Interests from TOTAL Affiliate

By Shriya Bhargava
July 30, 2020
2 minutes read
Noble Energy Offshore Rig

Privately held international oil company Perenco SA has entered into an agreement with TOTAL Gabon SA, a 58%-owned affiliate of French energy major TOTAL SA, to acquire a portfolio of non-operated interests in seven mature oil fields, offshore Gabon.

Under the terms of the agreement, the total cash consideration payable upon completion of the transaction will be between US$290 million and US$350 million, depending on future Brent oil prices.

The acquired assets include interests the Grondin, Gonelle, Barbier, Mandaros, Girelle, Pageau, and Hylia fields, as well as a 100% operated interest in the Cap Lopez oil terminal, which will be held by Perenco Oil & Gas Gabon SA. The interests are located in the offshore Grondin and Torpille areas, and produced approximately 8,000 barrels of oil per day (bbls/d) during 2019.

In 2017, the companies had entered into a similar agreement pursuant to which Perenco had acquired certain interests in twelve mature oil fields in Gabon, along with a 100% operated interest in the Rabi-Coucal-Cap Lopez pipeline network, for a total consideration of US$350 million.

“This transaction demonstrates our ability to high-grade Total E&P’s portfolio by monetizing mature fields with high breakeven point. We remain fully committed to Gabon through our operated production clusters at Anguille-Mandji and Torpille-Baudroie-Mérou, where we continue to maximize value for all stakeholders,” said Arnaud Breuillac, President of Exploration & Production at TOTAL.

“In the current volatile oil environment, this transaction will help Total Gabon first to concentrate on his (sic) main operated assets in order to make the most of it, and second to guarantee the future of the Cap Lopez Terminal with the consolidation of the volumes from two major actors in Gabon into the same terminal,” added Nicolas Terraz, TOTAL Gabon’s President.

TOTAL has been operating in Gabon for more than 90 years, and is a major player in the country’s upstream and downstream segments. Last year, TOTAL Gabon’s net equity production stood at around 33,000 bbls/d. In addition, the company also owns a 43.85% stake in the 1 million ton per annum (MMtpa) SOGARA refinery at Port Gentil and operates a network of nearly 50 service stations across the country.

The transaction is subject to customary closing conditions, including Gabonese government approvals.

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