Shell to Sell Out Gabon’s Oil Assets to Carlyle Group

Shell to Sell Out Gabon’s Oil Assets to Carlyle Group

Royal Dutch Shell Plc has agreed to sell its onshore oil assets in Gabon to a unit of Carlyle Group LP for $587m, Reuters reported.

For Shell, the deal is considered a further step in a $30b asset disposal program to help the company in reducing its debt after it acquired BG Group for $54b in 2016.

According to Bloomberg, Carlyle’s unit Assala Energy Holdings Ltd. will also take on $285m of debt from Shell’s Gabon unit and will pay an additional $150m depending on production performance and commodity prices.

Shell informed in a statement mid-March that the transaction will also result in Shell taking a $53m impairment charge this quarter.

Shell’s Gabon assets will be incorporated into Carlyle-backed Assala Energy. The assets operated by the Dutch company produce approximately 60,000b/d, of which 40,000b/d go to the firm.

The deal is expected to be finalized mid-2017 and is subject to conditions including various approvals.


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