Petroleum Africa
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Thursday, November 2, 2017
Shell, through its affiliates, completed the sale of its entire Gabon onshore oil and gas interests to Assala Energy Holdings Ltd. (Assala Energy) a portfolio company of The Carlyle Group. Assala paid a total of $628 million including equivalent interest for the assets.
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, 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 41,000 boepd in 2016.
Shell Trading (STASCO) will continue to have lifting rights from the Gabon onshore assets for the coming five years.
Effective November 1, Assala Energy will operate Shell’s onshore Gabon assets upstream assets. At completion, some 430 local employees have transferred from Shell to Assala Energy.
With this transaction, Assala Energy will assume debt of $285 million. The transaction will result in a total post-tax impairment for Shell of $151 million. Of this impairment, $53 million was taken in Q1 2017, $98 million will be taken in Q3 2017 with a final reconciliation to be reflected in Q4 2017. Assala Energy will make additional payments up to a maximum of $150 million depending on production performance and commodity prices.
The completion of this deal shows the clear momentum behind Shell’s $30billion divestment program and is in line with Shell’s drive to simplify the upstream portfolio and re-shape the company into a world class investment.
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