Perenco SA, an oil drilling company owned by the billionaire Perrodo family, plans to direct three-quarters of its $2 billion investments next year toward several African countries, with an increased focus on gas projects.
Known for its expertise in extracting crude from mature fields, Perenco generates the bulk of its production from four central African countries, including Gabon, while its operations extend across 14 countries worldwide, Bloomberg reported.
While output has dropped “a bit lower” from the half-a-million-barrel a day level, Perenco will “continue to fight the decline, but now being very proactive in gas development and exploration,” Chief Executive Officer Armel Simondin, who took on the role in March, said in an interview in Cape Town.
“As part of the transition, gas has a key role to play and that’s a very important part of the strategy going forward.”
Gabon, which contributes nearly a quarter of Perenco’s total production, is set to receive a significant portion of the company’s annual budget to support the construction of pipelines across the country. This pipeline network will connect to a planned small-scale liquefied natural gas (LNG) plant, expected to produce 700,000 tons annually, according to Perenco’s Chief Operating Officer, Benoit Simondin.
“We believe that there is a lot of untapped gas reserve along the coast of Africa that could be targeted with this kind of development.”
Perenco is also ramping up its investment in Congo after acquiring oil assets from Eni SpA last year. The company is currently in talks with the government to extend existing licenses and is exploring potential deals with other major companies to acquire additional assets soon, according to CEO Benoit Simondin.
Although the Perrodo family has diversified its investments, Perenco’s oil and gas production remains central to their portfolio, as it continues to be the company’s core business, Simondin stressed.
