French energy giant TotalEnergies has entered into a partnership with Global Infrastructure Partners (GIP), a BlackRock affiliate, in a deal that will provide the company with $1.8 billion in capital while unlocking value from selected oil and gas infrastructure assets across Africa.
Under the agreement, GIP will provide a $1.8 billion capital contribution to TotalEnergies. In return, TotalEnergies will pay the infrastructure investor a throughput-based tariff over a period of up to 15 years, according to a company statement.
Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, said the agreement would help the company realise the value of some of its African midstream infrastructure assets while strengthening its relationship with GIP.
“We are pleased to strengthen our relationship with GIP through this infrastructure agreement, which crystallises the value of some of our midstream infrastructure assets in Africa,” Sbraire said.
The transaction comes as TotalEnergies continues to expand and restructure its energy investments across Africa, with projects spanning oil, gas and renewable energy.
TotalEnergies African Assets
One of the company’s major ongoing projects is the $5.6 billion East Africa Crude Oil Pipeline (EACOP), which is nearing completion. The pipeline is designed to transport crude oil from landlocked Uganda to the coast of Tanzania for export. The project has faced sustained opposition from environmental groups, which have campaigned against financial institutions supporting the development.
TotalEnergies is also preparing for a major investment programme in Angola. The company and its partners plan to invest about $10 billion over the next five years to sustain oil production from the country’s ageing offshore fields.
In South Africa, TotalEnergies recently inaugurated the Hydra project in the Northern Cape, which the company describes as Africa’s largest hybrid renewable energy facility.
The new partnership with GIP gives TotalEnergies another avenue to unlock capital from its African midstream infrastructure portfolio while bringing in a long-term infrastructure investment partner.
The transaction also highlights the growing role of infrastructure investors in financing energy assets as major oil and gas companies seek to recycle capital while maintaining exposure to strategic infrastructure.
