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TOTAL Gabon sell oil wells to Perenco

Total Gabon has reached an agreement to sell stakes in seven mature offshore fields to Perenco, for an amount between CFAF 162 and 195 billion. The transaction is, however, subject to the approval of the Gabonese government.

A big transaction between Total Gabon and Perenco. The French oil group’s subsidiary in Gabon has just reached an agreement with independent producer Perenco to sell its stakes in seven mature, unoperated offshore fields, as well as its interests and the role of the operator in the Cap Lopez oil terminal.

Perenco will pay between $ 290 million and $ 350 million (over CFA 162 and 195 billion), depending on future Brent prices. However, nothing has been decided yet as the agreement is subject to the approval of the Gabonese government. The sale covers four fields in the Grondin region: Grondin, Gonelle, Barbier and Mandaros. The other three fields are in Torpille: Girelle, Pageau and Hylia. The production sold to Perenco amounts to around 8,000 barrels of oil per day in 2019.

“This transaction demonstrates our ability to add value to the Total E&P portfolio by monetizing mature fields with a high break-even point,” said Total’s director of exploration and production. “We remain fully engaged in Gabon through our production centres operated at Anguille-Mandji and Torpille-Baudroits-Mérou, where we continue to maximize value for all stakeholders,” announced Arnaud Breuillac.

Total Gabon and Perenco are not in their first such transaction. In 2017, the two oil companies had already reached a 195 billion CFA franc deal, which involved the transfer of around 13,000 barrels per day. Perenco thus acquired minority stakes in the Grondin and Torpille fields, in addition to certain onshore assets and the Rabi-Coucal-Cap Lopez pipeline.