Shell sells Gabon onshore assets
The Hague-based LNG giant Shell reached an agreement with Assala Energy Holdings, a Carlyle Group company, to sell its Gabon onshore interests for US$587 million.
Under the agreement, expected to close in mid-2017, the Assala Energy will assume a debt of $285 million as part of the transaction and make additional payments of up to a maximum of $150 million depending on production performance and commodity prices.
This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon consisting of 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.
Shell onshore in Gabon produced approximately forty-one thousand barrels of oil equivalent per day in 2016 and Shell Trading will continue to have lifting rights from the assets for the coming 5 years.
Speaking of the divestment, Shell’s upstream director, Andy Brown said the transaction is in line with the company’s $30 billion divestment program enabling the company to simplify its upstream portfolio following the acquisition of BG.