Total Gabon inches into profit in 2016

11 April 2017, Week 14, Issue 684

Total Gabon’s revenues fell in 2016 but, as a result of spending cuts, the company reported a net profit of US$6 million for the year. This is an improvement from a US$28 million loss in 2015. 

Revenues in 2016 were US$745 million, down 11% from the US$842 million recorded in 2015. 

There was a 6% increase in sales volumes, in combination with a 14% decrease in operating expenses. Furthermore, Total Gabon sold the Mboga permit in the first half of 2016 to the state, which helped shore up the company’s profit. 

Prices fell further in 2016, to US$37.9 per barrel, from US$46.8 per barrel in 2015. 

Total Gabon’s equity production was 47,400 bpd in 2016, almost flat from the 47,300 bpd in 2015. Stability came from the Anguille and Torpille fields, with workovers on Rabi Kounga, it said, which offset natural decline and the sale of Mboga. 

Spending in 2016 was focused on drilling on the Gonelle field, with the GNM020 and GNM021 wells, in addition to integrity work offshore, on Anguille, Torpille and Grondin, in addition to onshore, on the Cap Lopez terminal. 

Total Gabon announced a sale in February of this year, covering the disposal of five mature onshore fields, with the Rabi-Coucal-Cap Lopez pipeline network, to Perenco. The sale covers around 5,000 bpd, around 10% of Total Gabon’s production, with a value of US$177 million before adjustments. This will allow the company to refocus on its “principal offshore assets”, where substantial exploration potential remains. 

The sale covers the transfer of operatorship on the Gonelle and Grondin fields to Perenco, although Total Gabon will keep its 65.3% stake in the assets. The transfer of operatorship will allow Perenco to find new means of cutting costs through work on its nearby assets.