Greetings, fellow Investing Pioneers!
Today, we turn our attention to Perenco, the oil driller owned by the Perrodo family, and their remarkable ability to weather the storm of political upheavals in Africa while maintaining steady operations.
As the oil industry often grapples with political uncertainties, Perenco’s resilience offers valuable lessons for investors.
In August, the military takeover in Gabon sent shockwaves through the oil industry, impacting shares of several oil companies operating in the region.
Gabon holds a special place for Perenco, as it contains their largest operations. However, despite the coup taking CEO Benoit de la Fouchardiere by surprise, the disruption to their operations was minimal.
De la Fouchardiere, who has been with Perenco since 1997, holds a pragmatic view, stating, “We know politicians will change.
You have to live with that, and it’s not a problem as long as you do your job correctly.” This approach underscores the company’s commitment to maintaining business as usual despite political fluctuations.
The new leadership in Gabon swiftly signaled their commitment to the oil and gas industry, reassuring Perenco and other players that they were welcome to continue their operations.
This level of cooperation can be attributed to Perenco’s private ownership and their involvement in local projects to generate electricity.
Perenco’s unique business model focuses on extracting resources from fields that major companies have abandoned due to declining production but still contain substantial reserves of oil and gas.
This approach, coupled with their private ownership, has built the Perrodo family a significant fortune over the past three decades.
With assets spanning 14 countries worldwide, including Cameroon and the Republic of Congo, Perenco has established itself as a formidable player in the industry.
One of the key takeaways from Perenco’s success story is their ability to adapt to local conditions and contribute positively to the communities in which they operate.
By supplying gas for electricity projects in areas with limited access to power, Perenco has strengthened local relations and positioned itself as a valued partner in the development of these regions.
As De la Fouchardiere aptly puts it, “We don’t only drill and produce and export; we participate in the development of the country.”
This long-term vision and commitment to sustainability are core values that have allowed Perenco to thrive in an often unpredictable industry.
In a world where geopolitical events can have a profound impact on investments, Perenco’s approach of staying focused on their core operations, maintaining flexibility, and contributing positively to local communities serves as a shining example for investors seeking stability and growth in the ever-changing world of oil and gas.
So, as we continue our journey in the world of investments, let’s keep Perenco’s story in mind as a testament to resilience and adaptability, reminding us that even in the face of political storms, steady hands can steer the ship to success.
Peter Burke
