TotalEnergies Unlocks US$1.8bn From African Oil and Gas Infrastructure

TotalEnergies is set to receive 1.8 billion US dollars in a deal with Global Infrastructure Partners (GIP), as the French energy company monetises interests in selected oil and gas infrastructure assets in Africa.

The agreement will see GIP, which is part of BlackRock, provide the capital contribution to TotalEnergies. In return, TotalEnergies will pay GIP a throughput-based tariff for using the infrastructure over a period of up to 15 years.

The arrangement gives TotalEnergies an upfront injection of capital from assets that form part of its African midstream portfolio, while the long-term tariff structure links future payments to the volume of infrastructure used.

TotalEnergies said the agreement covers some of its interests in oil and gas infrastructure assets across Africa, although it did not identify the individual assets involved in the transaction.

Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, said the agreement strengthens the company’s relationship with GIP and allows TotalEnergies to realise value from its midstream infrastructure assets.

“We are pleased to strengthen our relationship with GIP through this infrastructure agreement which crystallizes the value of some of our midstream infrastructure assets in Africa,” Sbraire said.

Source: FSX Business News