Shell sells onshore Gabon oil assets for $587m

Shell sells onshore Gabon oil assets for $587m

Saturday, March 25, 2017 7:55 am

Shell Petroleum Development Company

The Carlyle Group has bought Royal Dutch Shell’s onshore assets in Gabon for $587 million, the firm said on Friday.

The firm said in London that by the sale, Shell’s Gabon assets would be incorporated into Carlyle-backed Assala Energy.

Carlyle-backed Assala Energy is led by former Tullow Oil executive David Roux and focuses on energy opportunities in sub-Saharan Africa.

Shell said in a separate statement that the deal marks a further step in a $30 billion asset disposal programme to help cut debt after its $54 billion acquisition of BG Group last year.

The Anglo-Dutch oil company has sold assets for more than $15 billion since 2016.

The assets operated by Shell produce approximately 60,000 barrels of oil equivalent per day, of which 40,000 barrels go to the company.

Under the deal, which is expected to close in the summer, Assala Energy will assume a debt of $285 million.

Shell said the transaction would result in an impairment charge of $53 million after tax which will be taken in the first quarter of 2017.


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