French oil company Total has signed an agreement for the sale of stakes and the transfer of operatorship in various mature assets in Gabon to Perenco.
According to Total’s statement on Monday, this agreement includes the sale of the group’s 100%-owned affiliate Total Participations Petrolières Gabon, which holds interests in 10 fields.
In addition, Total Gabon (Total 58%) has announced the sale of its interests in five fields and the Rabi-Coucal-Cap Lopez pipeline network. The total value of the transactions is around $350 million before adjustments and the production divested by Total represents around 13,000 SEC barrels per day (b/d).
Under the terms of the agreement, Total Gabon will divest all of its interests in the onshore Coucal, Avocette and Atora fields as well as the Rabi-Coucal-Cap Lopez pipeline network, and a partial interest in the offshore Hylia field.
Operatorship of these assets will also be transferred to Perenco. In addition, Total Gabon will sell all of its interest in the onshore non-operated Igongo field. The production from the fields being divested represents about 5,000 barrels per day (b/d), or 10% of Total Gabon’s 2016 SEC production.
In addition, Total Gabon will transfer the operatorship of the offshore Grondin, Gonelle, Barbier, Mandaros, Girelle and Pageau fields to Perenco while retaining its existing 65.3% equity interest in the assets. This change in operatorship will generate the opportunity for synergies with Perenco’s nearby operations.
Unaffected by the transaction are Total Gabon’s operated interests in the Anguille area, the offshore Torpille, Torpille Nord Est and Baudroie-Mérou fields, the deep offshore Diaba permit and the Cap Lopez oil terminal. Total Gabon will also retain its non-operated interest in the onshore Rabi field.
Guy Maurice, President of Total Gabon, said: “In a context of volatile Brent prices where the objective of improving operational efficiency is a priority, this agreement allows us to transfer the operatorship of certain assets to Perenco in order to take advantage of synergies with their nearby operations.
“In addition, it allows Total Gabon to refocus on its strategic operated assets and to assure the sustainability of our activities in the country.”
Following completion of the transaction, the group’s remaining upstream assets in Gabon will be held entirely through Total Gabon.