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Monday, March 27, 2017
Shell has reached a deal to sell some of its Gabonese assets. The company is selling all of its onshore assets to Assala Energy Holdings Ltd. for $587 million.
Subject to certain conditions and various approvals, around 430 local Shell employees will become part of Assala Energy. The news that Assala will pick up the Shell employees is welcome as Shell underwent a strike action due to the uncertainties of their employment tenor in the event of a sale earlier this year.
Assala will also assume debt of $285 million as part of the transaction and will make additional payments 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. This includes five operated fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), a participation interest in four non-operated fields (Atora, Avocette/M’Boukou, Coucal, and Tsiengui West), the associated infrastructure of the onshore pipeline system from Rabi to Gamba, and the Gamba Southern export terminal.
“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,” Andy Brown, Shell’s upstream director, said in a company statement.
“Together with recent divestments in the UK, Gulf of Mexico and Canada, this transaction shows the clear momentum behind Shell’s $30 billion divestment program, and it helps us to high-grade and simplify our upstream portfolio following the acquisition of BG,” he added.
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