Higher oil prices in the third quarter boosted Total Gabon’s revenues by 28%, to $95 million.
The company’s sales price reached $41.3 per barrel, up from $22.6 per barrel in the second quarter. Operated production fell by 2%, to 18,600 barrels per day, while production net to its interests held at 25,300 bpd.
Total Gabon said production had been stable as the gains from restarting the Anguille field compressor had been limited by the imposition of OPEC+ quotas. Natural decline also took its toll.
Over the nine months of 2020, its equity share of production was down 19%, at 26,200 bpd. This was down as a result of the Anguille compressor in the second quarter, some compression and sand issues at Grondin and natural decline.
Funds generated from operations fell to $19mn, from $31mn in the second quarter.
Capital expenditure increased to $25mn, from $10mn. Total Gabon said spending had gone on integrity works, a well intervention campaign and the installation of a gas pipeline on Grondin. Commissioning on the pipeline began in the third quarter.
The impact of the second quarter price crash continues to be seen in the nine-month results. Total Gabon’s selling price for the longer period averaged $33.6 per barrel, down 46% year on year. Revenues over this period were $282mn, down 54%.
Total Gabon approved the payment of a net dividend of $44.44 per share. The payment for the second quarter was $11 per share. The company opted for a higher payment because of its available cash and lack of debt. The total payment was $199.98mn to shareholders, up from $49.5mn for 2019.
Gabon sent Total Gabon a tax assessment letter for $22.7mn on October 2. This relates to an audit covering the 2014 to 2017 fiscal years.
Perenco bought a number of mature fields from Total in 2017, including a stake in Grondin and the role of operator. Following this, all of the French company’s assets in the country were held via Total Gabon.
In July this year, Total Gabon agreed a further sale to Perenco of various mature assets and the Cap Lopez terminal.