Maurel & Prom: Activity and sales for the first 9 months of 2018: US$342mm (€286mm)

10/24/2018, 7:00 AM (Source: GlobeNewswire)

Paris, 24 October 2018
 No. 14-18

Activity and sales for the first 9 months of 2018:
US$342mm (€286mm)

  • Sales of US$342m for the first nine months of 2018, up 19% compared with the same period in 2017
    • Continued rise in crude prices: average sale price for the period of US$70.7/bbl, up 40% compared with the first nine months of 2017
  • M&P total working interest production of 22,681 boepd in the first nine months of 2018, down 5% compared with the same period in 2017
    • Oil production in Gabon was 20,162 bopd for operated interest (16,129 bopd for M&P working interest), down 20% compared with the previous year due to limited evacuation capacity in Q2 and Q3 2018
    • Production in Tanzania was 81.8 MMcf/d for operated interest (39.3 MMcf/d for M&P working interest), up 83% compared with the previous year with a steady level of demand at more than 80 MMcf/d.
  • Strong cash position allowing the Group to implement its internal and external growth strategy
    • Cash balance of US$318mm at 30 September 2018
    • Continuation of the development drilling programme in Gabon
    • Roll-out of the Group's external growth strategy


Maurel & Prom will hold an analyst / investor presentation via an audio webcast, today at 9:30 am CEST, followed by a question and answer session.

Sales for the first nine months of 2018

  Q1 2018 Q2 2018 Q3 2018   9 months 2018   9 months 2017 Change 18/17
Total production sold over the period, M&P working interest                
million barrels of oil 1.7 1.4 1.2   4.3   5.1 -16%
million of MMBTU 3.4 3.7 3.9   11.0   6.0 83%
Average sale price                
OIL, in US$/bbl 66.3 73.0 74.3   70.7   50.5 40%
GAS, in US$/MMBTU 3.18 3.17 3.17   3.17   3.17 0%
EUR/USD exchange rate 1.23 1.19 1.16   1.19   1.11 7%
SALES (in US$m)                
Oil production 124 107 102   333   275 21%
Gabon 115 98 92   305   260  
Tanzania 9 9 10   28   15  
Drilling activities 4 2 3   9   12 -25%
Consolidated sales (in US$m) 128 109 105   342   287 19%
Consolidated sales (in €m) 104 92 90   286   258 11%

The Group's consolidated sales for the first nine months of 2018 stood at US$342 million, up 19% compared with the same period in 2017.

This increase was mainly related to the sharp rise in the average sale price of oil produced in Gabon (US$70.7/bbl, up 40% compared with the first nine months of 2017), despite a drop in production due to technical constraints impacting evacuation.

Hydrocarbon production in the first nine months of 2018

  Units Q1 2018 Q2 2018 Q3 2018   9 months 2018   9 months 2017 Change 18/17  
Production fully operated by M&P                    
 Oil bopd 23,975 19,173 17,409   20,162   25,239 -20%  
 Gas MMcf/d 77.0 81.6 86.7   81.8   45.0 82%  
 TOTAL  boepd 36,804 32,778 31,853   33,794   32,684 3%  
M&P working interest production             
 Oil bopd 19,180 15,338 13,928   16,129   20,191 -20%  
 Gas MMcf/d 37.0 39.2 41.7   39.3   21.5 82%  
 TOTAL  boepd 25,346 21,877 20,869   22,681   23,769 -5%  


  • Gabon

In Gabon, operated oil production stood at 20,162 bopd (16,129 bopd for M&P working interest) in the first nine months of 2018, down 20% compared with the same period in 2017. This was due to the restriction on the volumes evacuated by the pipeline connecting the Ezanga facilities to the Cap Lopez export terminal. These issues began in mid-May, improved in July but returned in August 2018.

  • Average monthly operated production in Gabon from July to October 2018 (bopd)

Note: Production data for October updated as of 22 October 2018

Exports were interrupted in recent months due to build-ups of pressure in the export pipeline operated by a third party, through which the production of several operators is transported. These pressure peaks are the result of fluctuations in the volume and proportion of the most "diluting" oils for the blend in the pipeline. The drop in temperatures during the dry season between May and September exacerbated the situation as it caused the flow characteristics to deteriorate.

Maurel & Prom carried out remedial and preventive actions (optimising oil processing, injecting gasoil into the pipeline) but still had to completely halt production on two occasions in August. Production gradually resumed in September but was disrupted again in October 2018.

A consultation is underway with the various pipeline users and Gabonese authorities to return to normal operating levels as soon as possible through better management of pipeline flows. Various technical solutions are also being considered (additional pumping station on the 18" pipeline, alternative export, etc.) in order to find a long-term solution to the challenges encountered.

  • Tanzania

In Tanzania, total operated production averaged 81.8 MMcf/d in the first nine months of the year, or 39.3 MMcf/d for M&P's working interest (48.06%), an 83% increase compared with the same period in 2017. Operated production reached 86.7 MMcf/d in the third quarter and is expected to stabilise at this level.

This increase reflected the continued rise in gas demand from Dar Es Salaam's industrial sector.

Financial position and outlook

  • Strong cash position

As at 30 September 2018, the Group's cash and cash equivalents position stood at US$318 million, up US$10 million compared with 30 June 2018.

  • Continuation of the development drilling programme in Gabon

On the Ezanga permit, the development drilling campaign, which began in the second quarter of 2018, continued with a total of six wells drilled and completed by mid-October. Drilling activities are continuing with two rigs in operation and a third one expected in December.

  • Roll-out of the Group's external growth strategy

Maurel & Prom announced yesterday that it had signed a share purchase agreement to acquire the 20% stake held by Angola Japan Oil Co., Ltd ("AJOCO") in blocks 3/05 and 3/05A located off Angola in the shallow waters of the Congo basin, the Group's historic regional foothold. Net production for the 20% working interest is approximately 4,600 bopd, with the assets offering significant development potential.

This acquisition, which remains subject to approval by the Angolan authorities, was described in a announcement released on 23 October 2018 and available on Maurel & Prom's website ( under "Investor relations > Press releases".

Maurel & Prom has also confirmed it is working on the acquisition of Shell's stake in the Urdaneta West oil field in Venezuela. This transaction is fully in line with Maurel & Prom's growth strategy, which focuses on high-potential development opportunities in the regions and countries in which the Group has operating experience. The Group takes all the necessary steps and actively works on meeting all condition precedents inorder to close the acquisition. A further announcement will be made in due course.

These two transactions highlight the Group's value creation strategy and transformation as Pertamina's international development platform.


French     English
Million M m Million
pieds cubes pc cf cubic feet
pieds cubes par jour pc/j cfpd cubic feet per day
milliers de pieds cubes kpc Mcf 1,000 cubic feet
millions de pieds cubes Mpc MMcf 1,000 Mcf = million cubic feet
milliards de pieds cubes Gpc Bcf billion cubic feet
millions de British Thermal Unit MBTU MMBTU million British Thermal Unit
baril b bbl barrel
barils d'huile par jour b/j bopd barrels of oil per day
milliers de barils kb Mbbl 1,000 barrels
millions de barils Mb MMbbl 1,000 Mbbl = million barrels
barils équivalent pétrole bep boe barrels of oil equivalent
barils équivalent pétrole par jour bep/j boepd barrels of oil equivalent per day
milliers de barils équivalent pétrole kbep Mboe 1,000 barrels of oil equivalent
millions de barils équivalent pétrole Mbep MMboe 1,000 Mbbl = million barrels of oil equivalent

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This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.


Maurel & Prom is listed for trading on Euronext Paris
CAC All-Share - CAC Oil & Gas - Next 150 - PEA-PME and SRD eligible
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA

This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Maurel & Prom via Globenewswire

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