TotalEnergies has closed the sale of its non-operated assets in Gabon to Perenco, following approval from the local authorities.
“This transaction is aligned with TotalEnergies’ strategy to enhance its portfolio by divesting mature, high break-even fields,” said Henri-Max Ndong-Nzue, president of TotalEnergies EP Gabon.
“TotalEnergies EP Gabon is refocusing on its operated offshore assets in the Anguille and Torpille sectors and remains a committed oil industry player in Gabon,” he said.
The company sold seven mature fields to Perenco, plus the Cap Lopez terminal. These had been held by TotalEnergies Gabon, in which TotalEnergies has a 58% stake.
The seven fields were Grondin, Gonelle, Barbier, Mandaros, Girelle, Pageau and Hylia. Total had a 65.275% stake in the first six and a 37.5% stake in Hylia. It also owned the Cap Lopez terminal entirely.
In July 2020, when it announced the sale, it reported Perenco would pay between $290 and $350 million, depending on future Brent prices. Total put the price paid at $350mn, although noting that this was before a final adjustment.
The fields have increased production since 2019. They had been producing 8,000 barrels per day at that point, Total said, reporting output was 8,400 boepd in the first three quarters of 2021. The Grondin fields gained on the conversion of wells from gas lift to electrical submersible.
While the seven fields increased production, Total’s overall share has fallen. In 2019, Total Gabon had 33,000 boepd, while this had fallen to 25,900 boepd in the third quarter of 2021.
This decline was despite the restart of the Torpille field in May this year. The field had been shutdown for five years.
Total has sold assets in Gabon to Perenco before. In 2017, Total sold an entire subsidiary, Total Participations Petrolières Gabon (TPPG), to Perenco. At the same time, Total Gabon sold Perenco five fields and a pipeline network.