TotalEnergies has agreed to hand over ownership of certain African midstream oil and gas assets to Global Infrastructure Partners, a BlackRock affiliate, in exchange for $1.8 billion. The French energy major will keep running the infrastructure while paying GIP a volume-linked tariff for up to 15 years.
TotalEnergies has struck an $1.8 billion deal with Global Infrastructure Partners, an affiliate of BlackRock, tied to the company's midstream oil and gas assets across Africa. The French energy major transfers ownership of the infrastructure to GIP while keeping operational control.
A sale-and-leaseback for pipelines
The structure works like a sale-and-leaseback: TotalEnergies hands over ownership of certain midstream infrastructure to GIP, then pays a throughput-based tariff for up to 15 years, a fee tied to the volume of oil and gas flowing through the assets. TotalEnergies continues running the infrastructure day to day, while GIP collects a steady, volume-linked revenue stream.
Assets span multiple African markets
Which assets are covered remains undisclosed, though they span TotalEnergies' African portfolio, including operations in Angola, Nigeria, and several other producing nations. CFO Jean-Pierre Sbraire framed the transaction as a deepening of the relationship with GIP, suggesting further collaboration between the two parties.
Why GIP wants African infrastructure
GIP, which BlackRock acquired to bolster its infrastructure investing business, manages one of the largest dedicated infrastructure portfolios in the world, and its interest in African midstream assets reflects broader institutional appetite for energy infrastructure in emerging markets. The 15-year tariff arrangement is notable for its length: GIP is betting TotalEnergies will keep pumping significant volumes through the assets, while TotalEnergies expects continued production growth in its African operations.
A balance-sheet move, not a retreat
For TotalEnergies, the deal reads as a balance-sheet optimization rather than a retreat from Africa. The $1.8 billion inflow gives the company room to fund new exploration, return capital to shareholders, or invest in its renewables and LNG businesses without taking on additional debt. The throughput-based structure also aligns incentives: if TotalEnergies produces more, GIP earns more; if volumes decline, the tariff payments shrink accordingly.
Source: Crypto Briefing
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