Shell has signed an agreement through its affiliates with Assala Energy Holdings to sell 100% of its onshore interests in Gabon for $587m.
The sale and purchase agreement (SPA) is subject to multiple closing certain conditions, including approvals from concerned authorities.
Shell expects that the deal will close by the middle of this year.
Under the SPA agreement, the purchaser will also assume debt of $285m and will make additional payments up to a maximum of $150m, according to production performance and commodity prices.
Shell Upstream director Andy Brown said: “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.
“Together with recent divestments in the UK, Gulf of Mexico and Canada, this transaction shows the clear momentum behind Shell’s $30bn divestment programme, and it helps us to high-grade and simplify our upstream portfolio following the acquisition of BG.”
The sold assets include Shell’s onshore oil and gas operations and related infrastructure in Gabon.
It comprises five operated fields Rabi, Toucan / Robin, Gamba / Ivinga, Koula / Damier and Bende / M’Bassou / Totou, participation interest in four non-operated fields such as Atora, Avocette / M’Boukou, Coucal and Tsiengui West along with an onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal.
Last year, Shell onshore in Gabon produced nearly 41,000 barrels of oil equivalent a day.
After the completion of this transaction, 430 local Shell employees will become part of Assala Energy workforce while Shell Trading (STASCO) will retain its lifting rights from the assets for the next five years.
Assala Energy will pay the stated consideration with equity from two Carlyle funds, namely, Carlyle International Energy Partners (CIEP) and Carlyle Sub-Sahara Africa Partners.
Image: Royal Dutch Shell head office at The Hague. Photo: courtesy of P.L. van Till / Wikipedia.
