Mayer Brown Advises the Republic of Gabon on Landmark $1 Billion Oil-Backed Prepayment Facility

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 the 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.