Royal Dutch Shell has closed the divestment of its entire interest in Gabon onshore oil and gas to The Carlyle Group’s portfolio company Assala Energy Holdings for an aggregate amount of $628m.

In March this year, affiliates of Shell signed an agreement to sell the Gabon onshore interests to Assala Energy for $587m.

Concurrent with the closure of the transaction, Assala Energy is expected to assume debt of $285m.

Meanwhile, the transaction is set to lead to a total post-tax impairment of $151m for Shell.

Assala Energy CEO David Roux said: “We will invest to secure and increase production levels and extend field life cycles.

“We will carry out responsible operations through best-in-class safety, environmental, social performance and transparent stakeholder partnerships. We are committed to long-term, sustainable growth and creating value.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
“We are committed to long-term, sustainable growth and creating value.”

Furthermore, Shell will receive additional payments of up to $150m linked to production performance and commodity prices.

The sale comprises all of the company’s onshore oil and gas operations and associated infrastructure in Gabon, including five operated fields, participation interest in four non-operated fields.

In addition, the deal includes related infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal.

Last year, the company’s onshore operations in Gabon produced around 41,000 barrels of oil equivalent per day.

Notwithstanding the transaction, the lifting rights from the Gabon onshore assets will remain with Shell Trading (STASCO) for the next five years.

As part of the deal, around 430 local employees of Shell will be transferred to Assala Energy.

The transaction is consistent with Shell’s $30bn divestment programme, which is aimed at simplifying the upstream portfolio.