Mayer Brown Advises the Republic of Gabon on Landmark $1 Billion Oil-Backed Prepayment Facility
- Olivier Mélédo,
- Ashley McDermott,
- Sarah Garvey,
- Hervé Kensicher,
- 萧霖恩,
- William Maddison,
- Harry Palmer (Trainee Solicitor)
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 of experienced 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.
