TotalEnergies secures $1.8 billion through its African infrastructure

In return, TotalEnergies will pay GIP a fee based on the volumes transported through these infrastructures over a period of up to fifteen years. This mechanism allows the energy group to immediately unlock value from certain assets while continuing to utilize them in its operations.

The statement did not specify which countries are involved or provide a list of the infrastructures included in the partnership. TotalEnergies also did not disclose the amount of future fees that will be paid to GIP.

Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, stated that the agreement allows the group to “crystallize the value” of certain infrastructure assets in Africa. GIP is the infrastructure investment arm associated with the American group BlackRock.

Dow Jones notes that such assets typically belong to the midstream segment of the oil and gas industry, which includes pipelines and storage facilities. However, the transaction announced on Friday pertains solely to the portfolio targeted by the agreement between TotalEnergies and GIP.

TotalEnergies has not provided a timeline for the completion of new projects or any additional capacity associated with the operation. The confirmed financial element at this stage remains the $1.8 billion injection and a fee indexed to volumes for a maximum duration of fifteen years.