Shell sells Gabon assets for up to US$1bn

Article by Staff Writer

SHELL has sold its onshore assets in Gabon to Assala Energy Holdings, part of The Carlyle Group, in a deal worth up to US$1bn.

Assala will pay US$587m for the assets, which produced around 41,000 boe/d in 2016. It will assume US$285m in net debt and make additional payments of up to US$150m, depending on the price of oil and gas, and the production of the assets. The sale of Shell’s assets continues its US$30bn programme of divestments. It is selling its 100% interest in Shell Upstream Gabon and its 75% interest in Shell Gabon, with the remaining 25% retained  by Gabon’s government.

Shell employs 480 staff in Gabon. It operates five fields in the country - Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou – and has participation interests in four more fields, the associated onshore pipeline system and the Gamba Southern export terminal. Its head office is in Gamba, while there are two further offices in Libreville and Port-Gentil.

“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,” said Shell upstream director Andy Brown, adding: “Together with recent divestments in the UK, Gulf of Mexico and Canada, this transaction shows the clear momentum behind Shell’s US$30bn divestment programme, and it helps us to high-grade and simplify our upstream portfolio following the acquisition of BG.”

In recent weeks, Shell has sold its in-situ and undeveloped oil sands interests in Canada, and ended its Motiva refining and marketing joint venture with Saudi Aramco. In February, the company sold assets that produce around half of its North Sea oil output to the independent producer Chrysaor, for US$3.8bn, while in January, SABIC bought out Shell’s 50% stake in the two companies’ SADAF joint venture in Jubail, Saudi Arabia.

Article by Staff Writer

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