LIBREVILLE, April 16 – Commodities trader Trafigura has signed a $1 billion oil prepayment agreement with Gabon, providing upfront financing in exchange for crude oil deliveries over a seven-year period.
Under the arrangement, Trafigura will supply pre-financing to the Gabonese government and act as the exclusive offtaker of the country’s profit oil for the duration of the deal. Profit oil refers to the government’s share of production after operating companies recover their costs.
Gabon’s economy and finance ministry said the agreement is intended to support public finances and strengthen foreign exchange reserves amid high global oil prices, adding that the funds will be used to finance investment programmes and meet social needs.
The ministry stated that the financing has a seven-year maturity and does not involve pledging specific crude cargoes as collateral.
Trafigura said the oil underpinning the agreement will be sourced from multiple producing assets under various production-sharing contracts.
The company also confirmed it has started syndicating part of the exposure to international financial institutions.
