The Central African country seeks to strengthen cash flow and boost foreign\u2011exchange reserves amid high global oil prices, Gabon’s Economy and \u200bFinance Ministry said.<\/p>\n
<\/p>\n
Under the agreement, Trafigura will provide upfront \u200bfinancing to the African state in exchange for future \u2060crude oil deliveries and will act as the exclusive offtaker \u200bof Gabon’s profit oil for the duration of the deal, the \u200bcompany said in a statement. Profit oil refers to the government\u2019s share of oil production after companies have recovered their costs.<\/p>\n
<\/p>\n
The government will receive the $1 \u200bbillion in pre\u2011financing with a maturity of seven years, the \u200bministry said in a separate statement, adding that no guarantees or collateral were \u200cpledged \u2060against oil cargoes in the deal advised by Algest Consulting.<\/p>\n
<\/p>\n
These resources are exclusively earmarked for funding investment programs and addressing the social needs of the population, it said.<\/p>\n
<\/p>\n
The oil underpinning the \u200bprepayment will be \u200bsourced from production \u2060across multiple petroleum-sharing contracts and from a range of producing assets and operators, Trafigura said.<\/p>\n
<\/p>\n
“We are pleased to \u200bhave signed this agreement with the Republic of \u200bGabon, continuing \u2060our long-standing trading relationship and contributing to the country’s development agenda,” Dave Gallagher, Trafigura’s Global Head of Structured Finance, said in the \u2060statement.<\/p>\n
<\/p>\n
–Reuters–<\/p>\n","protected":false},"featured_media":32078,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-32076","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"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\u2011year period.","published_date":"","news_description":"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\u2011year period.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32076\/revisions"}],"predecessor-version":[{"id":32079,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32076\/revisions\/32079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/32078"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=32076"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=32076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}