Oil majors Shell and Total SA are divesting some of their assets in Gabon, which signals a shift in the oil players' line-up in the country that rejoined OPEC last year after more than two decades.
France's Total said on Monday that it had agreed to sell stakes and transfer the operatorship of a number of mature assets in Gabon to Perenco, subject to regulatory approval. The total value of the transactions is estimated at around US$350 million and Total would be divesting some 13,000 bpd of its oil production in the country. Total is selling its wholly owned subsidiary Total Participations Petrolières Gabon that has interests in 10 fields. In addition, Total Gabon - in which Total holds 58 percent - is selling its interests in five fields and the Rabi-Coucal-Cap Lopez pipeline network.
However, "Total remains committed to Gabon and will focus on maximizing value from its principle strategic operated assets," Arnaud Breuillac, President of Total Exploration & Production, noted.
Apart from Total, Royal Dutch Shell is also looking to sell assets in Gabon as part of its US$30 billion global divestment plan. In November 2016, a Shell spokesman told Reuters that the company had informed its staff that it was in advanced talks to sell its onshore operations in Gabon.
Related: Have The Majors Given Up On Canada's Oil Sands?
According to S&P Global Platts, Shell's output in Gabon is some 55,000 bpd of oil equivalent. The Anglo-Dutch major also operates…
Oil majors Shell and Total SA are divesting some of their assets in Gabon, which signals a shift in the oil players' line-up in the country that rejoined OPEC last year after more than two decades.
France's Total said on Monday that it had agreed to sell stakes and transfer the operatorship of a number of mature assets in Gabon to Perenco, subject to regulatory approval. The total value of the transactions is estimated at around US$350 million and Total would be divesting some 13,000 bpd of its oil production in the country. Total is selling its wholly owned subsidiary Total Participations Petrolières Gabon that has interests in 10 fields. In addition, Total Gabon - in which Total holds 58 percent - is selling its interests in five fields and the Rabi-Coucal-Cap Lopez pipeline network.
However, "Total remains committed to Gabon and will focus on maximizing value from its principle strategic operated assets," Arnaud Breuillac, President of Total Exploration & Production, noted.
Apart from Total, Royal Dutch Shell is also looking to sell assets in Gabon as part of its US$30 billion global divestment plan. In November 2016, a Shell spokesman told Reuters that the company had informed its staff that it was in advanced talks to sell its onshore operations in Gabon.
Related: Have The Majors Given Up On Canada's Oil Sands?
According to S&P Global Platts, Shell's output in Gabon is some 55,000 bpd of oil equivalent. The Anglo-Dutch major also operates the Gamba terminal, which exports additional 20,000 boepd from other producers.
When Gabon rejoined OPEC last year, it expected to widen cooperation with the cartel and seek to boost its domestic production, which was around 219,000 bpd in 2015, down from 222,000 in 2014 and a peak of 370,000 bpd in 1997. Gabon - the cartel's smallest producer - is part of the production cut agreement with a pledge to reduce output by 9,000 bpd to bring it to 193,000 bpd between January and June. OPEC's figures for January show Gabon pumped 199,000 bpd last month.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
To read the full article
Please sign up and become a premium OilPrice.com member to gain access to read the full article.
Register Login