Shell agrees $537 million onshore Gabon assets sale

Shell agrees $537 million onshore Gabon assets sale

 

Royal Dutch Shell (LSE:RDS) will sell its onshore oil assets in Gabon to a unit of the world’s largest private equity firm Carlyle Group LP for US$587 million, in the latest move towards a $30 billion divestment target.

Assala Energy Holdings will also assume the $285 million of debt attached to Shell’s Gabon unit, and will make a further payment up to $150 million depending on production performance and commodity prices.

The Anglo-Dutch multinational will also take on a $53 million impairment charge during this quarter, as part of the transaction.

Andy Brown, director for Shell’s upstream business said: “[The sale in Gabon] 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.”

The Gabon unit includes five operated fields, interests in four others, a pipeline system and an export terminal, which will all be transferred to Carlyle.

Shell’s share of production from the fields was about 41,000 barrels of oil equivalent a day last year.

The company currently holds licenses for two blocks located off Gabon’s coast, which will remain under Shell’s ownership.

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