Shell divests Gabon onshore assets $587 mn

Shell divests Gabon onshore assets for $587 mn

7:58 AM, 27th March 2017
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THE HAGUE, NETHERLANDS: Royal Dutch Shell plc (Shell), through its affiliates, has reached an agreement with Assala Energy Holdings Ltd a portfolio company of The Carlyle Group (CG), to sell 100 percent of its Gabon onshore interests for $587 million.

Gabon, a country along the Atlantic coast of Central Africa. The sale & purchase agreement (SPA) expected to close in mid-2017. 

The purchaser will also assume a debt of $285 million as part of the transaction. The purchaser will make additional payments up to a maximum of $150 million depending on production performance and commodity prices. The transaction will result in an impairment charge of $53 million post tax which will be taken in Q1 2017.

This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon: five operated fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), participation interest in four non-operated fields (Atora, Avocette/M’Boukou, Coucal, and Tsiengui West). As well as the associated infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal.

As a result of the sale, some 430 local Shell employees will become part of Assala Energy at completion.

Assala will acquire these assets with equity from two Carlyle funds: Carlyle International Energy Partners (CIEP) and Carlyle Sub-Sahara Africa Partners (SSA).

Shell onshore in Gabon produced approximately forty-one thousand barrels of oil equivalent per day in 2016 and Shell Trading (STASCO) will continue to have lifting rights from the assets for the coming 5 years.

“Shell is very proud of the strong legacy we have built in Gabon over the past 55 years. The decision to divest was not taken lightly, but it is consistent with Shell’s strategy to concentrate our Upstream footprint where we can be most competitive. Shell will continue to pursue opportunities in Sub-Saharan Africa,” said Andy Brown, Shell’s upstream director.

“Together with recent divestments in the UK, Gulf of Mexico and Canada, this transaction shows the clear momentum behind Shell’s $30bn divestment programme, and it helps us to high-grade and simplifies our upstream portfolio following the acquisition of BG,” added Brown.

© Worldofchemicals News 

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