Quidah is an online platform that connects investors with curated opportunities and expert insights on Africa’s emerging markets, while offering businesses promotional services, partnership facilitation, and market intelligence to attract capital and grow their operations.
Industries
Commodities trader Trafigura said on Wednesday it had signed a $1 billion prepayment agreement with Gabon, under which it will receive crude oil deliveries over a seven-year period.
The Central African country said it wants to strengthen cash flow and boost foreign exchange reserves amid high global oil prices.
Under the agreement, Trafigura will provide upfront financing to the African state in exchange for future crude oil deliveries and will act as the exclusive offtaker of Gabon's profit oil for the duration of the deal.
Profit oil refers to the government’s share of oil production after companies have recovered their costs.
The government will receive the $1 billion in pre-financing with a maturity of seven years, the ministry said in a separate statement, adding that no guarantees or collateral were pledged against oil cargoes in the deal advised by Algest Consulting.
These resources are exclusively earmarked for funding investment programs and addressing the social needs of the population, it said.
The oil underpinning the prepayment will be sourced from production across multiple petroleum-sharing contracts and from a range of producing assets and operators, Trafigura said.
“We are pleased to have signed this agreement with the Republic of Gabon, continuing our long-standing trading relationship and contributing to the country's development agenda,” Dave Gallagher, Trafigura's global head of structured finance, said in the statement.
Trafigura has also begun syndicating part of the exposure to international financial institutions.
