Togo and Gabon sign a $1 billion oil prepayment agreement.

Commodity trader Tok has announced that they have signed a $1 billion prepayment agreement with the Republic of Gabon. According to the agreement, Tok will receive crude oil deliveries over a period of seven years. In a statement, Tok stated that the company will provide upfront financing to the African country in exchange for future oil deliveries, and will act as the exclusive off-taker for Gabon's "profit oil" during the transaction. Profit oil refers to the share of oil production allocated to the government after the oil company recovers its costs. Tok stated that the oil used as collateral for the prepayment will come from multiple production sharing contracts and a range of producing assets and operators. Dave Gallagher, Tok's Global Head of Structured Finance, said in the statement: "We are pleased to have signed this agreement with the Republic of Gabon, continuing our long-standing trading relationship and contributing to the country's development agenda." Tok has also begun to sell a portion of the risk exposure to international financial institutions.