TotalEnergies has entered into a partnership agreement with Global Infrastructure Partners (GIP), a part of BlackRock, covering the energy company’s interests in selected oil and gas infrastructure assets in Africa. Under the agreement, GIP will make a capital contribution of US$1.8 billion to the partnership. In return, TotalEnergies will pay GIP a throughput-based tariff over a period of up to 15 years.
The agreement covers TotalEnergies’ interests in oil and gas infrastructure assets located in Africa. The transaction provides a structure for the company to realise value from selected midstream infrastructure assets while maintaining access to the infrastructure required for its operations.
Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, said, “We are pleased to strengthen our relationship with GIP through this infrastructure agreement which crystallizes the value of some of our midstream infrastructure assets in Africa.” The partnership with GIP forms part of TotalEnergies’ approach to managing its portfolio of energy infrastructure assets while continuing to operate across the wider African energy market.
TotalEnergies is a global integrated energy company involved in the production and marketing of oil and biofuels, natural gas, biogas, low-carbon hydrogen, renewable energy and electricity. The company employs more than 100,000 people and operates in about 120 countries. Its activities cover the entire energy value chain, from production and processing to the supply of energy products and electricity.
TotalEnergies has operations across several energy segments and is developing projects in renewable power, electricity, low-carbon hydrogen and other lower-carbon energy sources alongside its oil and gas activities. The company said sustainability is incorporated into its strategy, projects and operations. Its activities also include environmental, education, healthcare, sports and livelihood initiatives in the communities where it operates.
The agreement with GIP covers infrastructure associated with TotalEnergies’ African oil and gas activities. Through the throughput-based tariff structure, the partnership provides GIP with returns linked to the use of the infrastructure over the agreed period, while TotalEnergies receives the capital contribution.
The transaction also strengthens the relationship between TotalEnergies and GIP. Global Infrastructure Partners is an infrastructure investment manager that became part of BlackRock. TotalEnergies continues to operate as an integrated energy company with a portfolio spanning conventional and low-carbon energy. Its strategy includes meeting energy demand while increasing its activities in renewable power and other lower-carbon sources.
The company’s global operations include oil and gas production, natural gas and electricity, biofuels, biogas, low-carbon hydrogen and renewable energy. Its workforce and international presence support projects and operations across approximately 120 countries.
