United Kingdom – Mayer Brown Advises The Republic Of Gabon On Landmark $1 Billion Oil-Backed Prepayment Facility

Under the agreement, Trafigura will provide the prepayment to the Republic of Gabon in exchange for the future delivery of crude oil over a seven-year term. Trafigura will act as exclusive off taker of the Republic of Gabon’s Profit Oil for the duration o

United Kingdom

London – Mayer Brown has advised the
Republic of Gabon on a landmark USD1 billion prepayment agreement
with Trafigura.

Under the agreement, Trafigura will provide the prepayment to
the Republic of Gabon in exchange for the future delivery of crude
oil over a seven-year term. Trafigura will act as exclusive off
taker of the Republic of Gabon’s Profit Oil for the duration of
the agreement.

The oil underpinning the prepayment comprises production from
across petroleum sharing contracts and draws on a diversified pool
of producing assets and operators, providing a resilient production
base across a range of fields. The proceeds will be deployed by the
Republic of Gabon to advance its development agenda.

As one of Africa’s largest producers and exporters of crude
oil, Gabon plays a critical role in supplying energy to global
markets.

The deal is a great example of Mayer Brown’s specialist
capabilities in the energy and structured trade and commodity
finance sector, in particular deals involving African sovereigns.
It involved a team of lawyers across Dubai, London and Paris.

Thierry Minko, Minister of Economy, Finance, Debt & State
Holdings for the Republic of Gabon, with responsibility for
tackling the cost of living, commented:“The Republic
welcomes the strong return of Trafigura to Gabon and thanks the
company for this agreement, which aims to optimise the
country’s oil resources, strengthen the foreign exchange
reserves of the Central Bank, and facilitate the proactive
management of the nation’s treasury. The State extends its warm
congratulations to the strategic, financial, and legal advisors,
namely Algest, Rothschild & Co, Mayer Brown, Adna, and
Bracewell LLP, for the remarkable work accomplished in record
time.”

Olivier Meledo, global co-head of the firm’s Africa
practice,commented: “We were delighted to have assisted
the Republic of Gabon on this important transaction. It was
necessary to use a range ofexperienced practitioners from within
Mayer Brown to complete the deal within the required timeline, and
we are proud to have achieved this.”

The Mayer Brown team was led by Olivier Mélédo and
Ash McDermott, who were assisted by Sarah Garvey, Hervé
Kensicher, Ling Seow, Will Maddison and Harry Palmer.