Perenco’s African oil production unaffected by nationwide coups

(Bloomberg) – Perenco, an oil driller owned by the billionaire Perrodo family, has seen no disruption to its operations from coups across Africa and expects business to continue as usual.

The military takeover of the former French colony of Gabon in August sent the shares of several oil companies plunging amid doubts about the future of their operations there. The West African nation contains Perenco’s biggest operations, and while the coup came as a surprise to Chief Executive Officer Benoit de la Fouchardiere, its impact was minimal.

“We know politicians will change,” De la Fouchardiere said in an interview on the sidelines of a Cape Town conference. “You have to live with that and it’s not a problem as long as you do your job correctly.”

Gabon’s new leadership quickly signaled that “we need the business, we need oil and gas, so please continue,” said De la Fouchardiere, who has worked at Perenco since 1997. He also credits the company’s private ownership and local projects to generate electricity as something that strengthened its position.

The Gabon coup was the ninth in three years through sub-Saharan Africa, a continent that’s home to more than two thirds of Perenco’s production of 500,000 bpd. The London-based company is no stranger to such political situations. In 2021 it agreed to buy Glencore Plc’s oil assets in Chad, undeterred by a military takeover of the government that happened months earlier.

Hubert Perrodo founded the Perrodo Energy Company three decades ago with a focus on squeezing resources out of fields that have been sold off by major companies because they have already passed peak production, but still contain significant quantities of oil and gas, according to the company website. The business has built the family a fortune with assets spanning 14 countries worldwide, including Cameroon and the Republic of Congo.

“The majors — they like the first production, exploration, appraisals — they like it big,” said De la Fouchardiere, When they reach a point, usually a couple decades later, and more investment is needed, “they don’t really like it,” he said.

Perenco also participates in electricity projects by supplying gas to areas that often have limited access to power, a benefit that strengthens local relations, the CEO said.

“We don’t only drill and produce and export we participate in the development of the country,” said De la Fouchardiere.

Months after taking over the Chad assets from Glencore, Perenco used gas to produce power in Moundou, the country’s second biggest city.   

“The Perrodo family have a long-term vision, they want the business to continue so we adapt to the world as well,” De la Fouchardiere said. “Above all, again, we’re convinced that if we are in Gabon for 30 years, we‘ll be there for the next 30 years.”