Gabon, a central African nation and member of the Organization of the Petroleum Exporting Countries (OPEC), is experiencing turmoil as military officers declared a coup following President Ali Bongo's election victory. This development has led to a significant drop in shares for TotalEnergies EP Gabon, a subsidiary of the French major TotalEnergies.
As of 0949 GMT, TotalEnergies EP Gabon's stock has plummeted by 10% to EUR166.00. This decline comes in the wake of the officers' announcement on national television that they have taken control of the government. President Ali Bongo, whose family has been in power for over 50 years, had just been declared the winner of the recent presidential elections.
TotalEnergies in Gabon
TotalEnergies, with over 90 years of presence in Gabon, has been actively involved in oil and gas exploration, production, and retail operations. The company's subsidiary, TotalEnergies EP Gabon, holds a 58.28% share, while the Gabonese state owns 25%. In 2022, the subsidiary produced 5.8 million barrels of crude oil.
Impact on Other Companies
The coup in Gabon also affects other companies operating in the country. French-listed oil company Maurel & Prom and mining company Eramet have experienced significant declines in their shares as well. Maurel & Prom's shares have slumped by 19%, while Eramet's have declined by 18% since the officers' announcement.
Maurel & Prom, which holds a share of oil production in Gabon, reported an average daily production of 15,779 barrels in the first half of 2023, accounting for approximately 58% of the country's total production. On the other hand, Eramet's local subsidiary in Gabon, which extracts manganese ore from the Moanda mine, has suspended all operations and rail traffic in response to the coup.
The declaration of a coup in Gabon has had a profound impact on TotalEnergies EP Gabon shares as well as other companies operating in the country. The situation remains fluid, and it remains to be seen how the political landscape and business environment in Gabon will evolve in the coming days and weeks.