French firm Total agrees to sell some Gabon assets to Perenco

31 July 2020 (Last Updated July 31st, 2020 14:51)

French oil major Total has announced that its 58%-owned affiliate Total Gabon had agreed to sell its stakes in seven oil fields off the coast of Gabon to Perenco.

French firm Total agrees to sell some Gabon assets to Perenco
Total has been operating in Gabon for more than 90 years. Credit: Erin via Flickr.

French oil major Total has announced that its 58%-owned affiliate Total Gabon had agreed to sell its stakes in seven oil fields off the coast of Gabon to Perenco.

The sale agreement also comprises the transfer of stakes and operatorship in the Cap Lopez oil terminal.

Total added that Perenco will pay between $290m and $350m for these assets, depending on future prices of the Brent crude.

The production divested by Total’s Gabon affiliate amounted to about 8,000 SEC barrels a day of oil last year.

Total Exploration & Production (E&P) president Arnaud Breuillac said: “This transaction demonstrates our ability to high-grade Total E&P’s portfolio by monetizing mature fields with a 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.”

According to Total, the transaction is subject to the approval of the Gabonese authorities.

Total has been operating in Gabon for more than 90 years.

In February 2017, Total Gabon signed an agreement to sell its interests in five mature fields and the Rabi-Coucal-Cap Lopez pipeline network to Perenco.

In a separate development, Total and its joint venture (JV) partner Apache Corp made their third oil discovery at the Kwaskwasi-1 well on Block 58 offshore Suriname.

Apache operates and owns a 50% working interest in the block while Total holds the remaining 50% interest.