AMSTERDAM: Royal Dutch Shell plc, through its affiliates, has reached an agreement with Assala Energy Holdings Ltd. a portfolio company of The Carlyle Group, to sell 100% of its Gabon onshore interests for USD 587 million. The Sale & Purchase Agreement (SPA) is subject to certain conditions which include various approvals. Closing is expected in mid-2017.
The purchaser will also assume debt of USD 285 million as part of the transaction. The purchaser will make additional payments up to a maximum of USD 150 million depending on production performance and commodity prices. The transaction will result in an impairment charge of USD 53 million post tax which will be taken in Q1 2017.
Andy Brown, Shell’s Upstream Director, says, “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.”
Infrastructure assets included in the deal include the pipeline system from Rabi to Gamba and the Gamba Southern export terminal. About 430 Shell employees will become part of Assala Energy.
Shell’s onshore assets in Gabon produced roughly 41,000 barrels of oil-equivalent per day (BOE/d) in 2016, and Shell Trading will continue to have lifting rights from the assets for the next five years.
As a result of the sale some 430 local Shell employees will become part of Assala Energy at completion.
Assala Energy Holdings will acquire these assets with equity from two Carlyle funds: Carlyle International Energy Partners (CIEP) and Carlyle Sub-Sahara Africa Partners (SSA).
