Maurel & Prom : Nine-month sales 2016

Paris, 27 October 2016
 No. 17-16

Nine-month sales 2016

Nine-month sales 2016: €226 million vs €205 million, up 10%

• Q3 2016 production in line with initial objective, averaging 28,333 bopd
• Q3 Tanzania gas sales show M&P share averaging 21.3 MMcf/d
• Oil price down 19%, at US$41 a barrel
• Updated estimate for Gabonese oil production: 27,000 bopd (vs FY16 objective: 28,000 bopd)

Group consolidated sales in the first nine months of 2016 were up 10%, at €226 million.

This increase was mainly the result of strong oil production in Gabon in the third quarter of 2016, averaging 28,333 bopd at 100% (22,666 bopd M&P share), whereas the third quarter of 2015 was marked by the production shutdown in September 2015 following Association Coucal's notification of force majeure affecting the pipeline.

Over the first nine months of the year, the increased production in Gabon (+37%) was due to the operating performance from water injection and the securing of the oil pipeline, which enabled the operator (M&P) to produce an average 26,993 bopd at 100% over the period, versus 19,689 bopd over the same period in 2015.

During the first nine months of 2016, the average sale price was US$41/barrel, versus US$51/barrel for the same period in 2015, down 19%.

In Tanzania, gas production was down quarter-on-quarter, at 34 MMcf/day at 100%, reflecting the low demand for gas from the Tanzanian Petroleum Development Corporation (TPDC). Gas production capacity under the Mnazi Bay license is currently about 80 MMcf/d.

As a result of the strike organised by the national oil workers' union, the Organisation nationale des employés du pétrole (Onep), which started on 17 October 2016, the Group had to reduce production at the Ezanga fields in Gabon (operator Maurel & Prom, 80%) for three days to ensure the safety of non-striking staff and of the facility itself.

Negotiations resulted in the strike being lifted on 25 October 2016. Operations were back to normal by the morning of 26 October 2016.

In Gabon, based on the production during the first nine months of 2016, on the latest events in Gabon and on the current level of production, the estimated full-year production for 2016 is expected to be 27,000 bopd at 100% (21,600 bopd M&P share), compared with an initial objective of 28,000 bopd at 100% (22,400 bopd M&P share).

In Tanzania, gas production depends on industrial consumption in Dar Es Salam, as reflected in requests by TPDC to the operator (Maurel & Prom, 48.06 %).

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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.

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