Shell Sells Gabon Assets to Carlyle

Shell said March 24 it has agreed to sell 100% of its Gabon onshore interests for $587mn to US-based private equity firm Carlyle Group. 

Carlyle will also assume debt of $285mn and will make additional payments up to a maximum of $150 million depending on production performance and commodity prices. The transaction will result in an impairment charge for Shell of $53mn post tax which will be taken in 1Q 2017. Closing is expected in mid-2017.

This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon: five operated fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), participation interest in four non-operated fields (Atora, Avocette/M’Boukou, Coucal, and Tsiengui West), as well as the associated infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal. Shell onshore in Gabon produced roughly 41,000 barrels of oil equivalent per day in 2016 and Shell Trading (Stasco) will retain lifting rights from the assets for the coming five years.

Mark Smedley