TotalEnergies signs $1.8 billion African infrastructure agreement with GIP

TotalEnergies ($TTE) signed a partnership agreement with Global Infrastructure Partners, part of BlackRock ($BLK), relating to its interests in selected African oil and gas infrastructure assets. GIP will make a $1.8 billion capital contribution. In return, TotalEnergies will pay a tariff linked to throughput over a period of up to 15 years.

The structure exchanges capital for a stream of infrastructure-related payments, rather than announcing $1.8 billion of oil or gas sales. The short release does not identify the individual assets, provide a detailed ownership split or quantify the future tariff payments. It also does not state that the contribution has already been received. BlackRock’s connection is through GIP, the investment platform participating in the agreement.

Sources:

• TotalEnergies — partnership announcement, Business Wire