— In a move that will see the company strengthen its footprint even further across the African energy sector while ushering in a new era of hydrocarbon production in Chad, European independent oil and gas company, Perenco, has announced the acquisition completion of Anglo-Swiss multinational Glencore’s corporate entities in Chad. With the acquisition, Perenco now holds Glencore’s entire upstream oil interests in Chad, a particularly lucrative market with significant potential across the upstream landscape.
The acquisition provides Perenco full ownership of PetroChad Mangara (PCM) – the operator of the Mangara, Badila and Krim oil fields in Chad’s Doba Basin – with the company announcing its intention to restart production, bringing Chad’s oil production back up to 16,000 barrels per day in the near term. With Badila and Mangara representing two sizeable oilfields, producing since 2014 – with oil exported via the Doba oil pipeline to Kribi in Cameroon –, and Krim an undeveloped yet high potential discovery, opportunities for increasing production and positioning the country as a top oil producer are significant.
“Perenco has been operating in Central Africa since 1992, a region where our know-how in operating oil and gas fields and developing infrastructure is highly applicable. We look forward to working with the Chadian authorities to restart production from these important fields. We believe Perenco is uniquely placed to make a meaningful contribution to the ongoing responsible development of Chad’s hydrocarbon sector for the benefit of all stakeholders and are excited about establishing a long-term partnership with the country,” stated Benoît de la Fouchardière, Group General Manager, Perenco, adding that, “We would also like to welcome the PCM staff into the Perenco Group, they are joining a network of 6,800 professionals in 15 countries, and we look forward to a future of mutually beneficial collaboration.”
With an experienced and committed oil and gas company such as Perenco entering the market, Chad’s energy sector is set to see rapid growth, even as close as the short term. As the African Energy Chamber (AEC) continues to emphasize, Africa needs companies such as Perenco to drive exploration and production and invest in current and emerging hydrocarbon markets. Africa’s oil and gas resources offer the ideal solution to making energy poverty history, and through acquisitions such as this, Perenco has demonstrated its commitment to ushering in a new era of energy resilience and security in Africa.
“The AEC believes that this is a great addition for Chad and Perenco. At this time, Chad will be having a partner in Perenco, whose foundation has always been built upon a strong geology-led strategy. The Mangara, Badila and Krim oilfields in the Doba Basin contain the key strategic components common to all of Perenco’s assets with significant untapped potential to enhance performance through operational efficiencies and further exploration with a unique team that has mastered the art of project execution in Africa,” states NJ Ayuk, Executive Chairman of the AEC.
Perenco’s acquisition would not have been possible without the enabling environment provided for by the government of Chad. Owing to the country’s high potential as a hydrocarbon producer, the Ministry of Petroleum and Energy, led by H.E. Minister Djerassem le Bemadjiel, has made significant progress to create an environment worthy of sizeable foreign investment. The AEC recognizes and commends the work done by the ministry to fast track the Perenco-Glencore acquisition approval process, ensuring no delays while emphasizing the readiness of Chad’s oil and gas sector for international oil company participation. The ministry has shown that Chad is officially ready for investment, and in doing so, has positioned the country as a highly competitive market that will see further deals such as this take place.
“Chad is lucky to have a company with the experience in developing resources in a sustainable manner and will develop local content as it has done throughout Africa. We need to continue encouraging the government to create the much needed enabling environment for operators to work. When we do that, companies will invest and bring capital into great projects. We need good companies with patient capital and technical skills to drive energy production and make energy poverty history by 2030,” concluded Ayuk.
The deal comes at a time when the continent’s energy elite, international investors and energy professionals from across the African space are about to convene in Cape Town for the 2022 edition of Africa’s premier event for the oil and gas sector. During African Energy Week (AEW) – which takes place from October 18-21, 2022 – stakeholders will meet for four days of networking, dialogue and decision making. As the voice of the African energy sector, the AEC is excited to see more deals such as this signed in Cape Town, with the event offering the perfect platform where decisions will be made on the future of the African energy sector.