#Wrl. $ 350 mill Prenco deal. The $350 million deal includes the sale of stakes and the transfer of operatorship in various mature assets in Gabon to Perenco, which is already active in the country, including the sale of the Rabi-Coucal-Cap Lopez pipeline network.
Total said this deal has come about in an environment where "reducing the breakeven of our operations is a top priority" due to oil price volatility.
"This agreement demonstrates our ability to capture value through the disposal of mature assets while benefiting from the synergies generated by the transfer of operatorship," said Arnaud Breuillac, president of Total Exploration & Production.
Total is currently the operator of the Capo Lopez terminal, from which the key export grades of Rabi Light and Mandji are exported.
Total Gabon's equity share of operated and non-operated oil production averaged 47,400 b/d in 2016, from 47,300 b/d the previous year.
The company's revenues amounted to $745 million in 2016, down 11% from $842 million in 2015, mainly due to the lower average selling price for Total Gabon's crude oil grades, partially offset by the 6% increase in volumes sold over the period due to the lifting schedule.
OIL PRODUCTION STAGNATING
Shell also indicated recently that it is in ongoing talks related to the divestment of the company's assets there, which could affect oil output in the country.
Shell's production in Gabon is around 55,000 b/d of oil equivalent. It also operates the Gamba terminal from which a further 20,000 boe/d from other producers is exported.
Production reached a peak of 365,000 b/d in 1996 but has since steadily declined, mainly due to maturing fields and also because of a lack of any significant oil projects over the past decade.
Gabonese crude attracts a fairly broad and eclectic customer base, including refiners in Trinidad & Tobago, France, Malaysia and Australia.
Gabon rejoined OPEC in July after a gap of more than 20 years, and its current production is around 200,000 b/d, according to S&P Global Platts estimates.
Under the current OPEC output agreement, Gabon is expected to cut production by 9,000 b/d to 193,000 b/d during the first six months of this year.
Gabon, like its West African neighbors, has been hit hard by falling crude prices, with oil accounting for about half of government revenues and 80% of national exports.
Last year, Gabon postponed its 11th offshore oil licensing round due to reduced interest as oil companies have shelved and delayed billions of dollars in upstream spending since the oil price slump.
The high cost of deepwater developments in the current environment has put a dampener on such projects, especially in the West African region.