Assala Energy to buy Shell's Gabon onshore interests for $587 million

Matt Zborowski
Assistant Editor

Assala Energy Holdings Ltd., a portfolio firm of global alternative asset manager Carlyle Group, has agreed to acquire all of Royal Dutch Shell PLC's onshore oil and gas operations and related infrastructure in Gabon for $587 million.

The deal, expected to close midyear, comprises the operated Rabi, Toucan-Robin, Gamba-Ivinga, Koula-Damier, and Bende-M'Bassou-Totou fields; interest in nonoperated Atora, Avocette-M'Boukou, Coucal, and Tsiengui West fields; and associated systems of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal.

Shell onshore in Gabon produced 41,000 boe/d in 2016. Shell Trading will continue to have lifting rights from the assets for the coming 5 years. Assala Energy will also assume $285 million in debt as part of the deal. The firm will make additional payments of as much as $150 million depending on production performance and commodity prices. The deal will result in an impairment charge of $53 million post tax, which will be taken in the first quarter.

Assala Energy Holdings will acquire the assets with equity from Carlyle International Energy Partners and Carlyle Sub-Sahara Africa Partners.

Shell also agreed to divest nearly all of its Canadian oil sands interests for $7.25 billion. In January, it agreed to sell oil and gas assets in the UK North Sea and Thailand for nearly $5 billion.

Last year's gulf divestment comprised 100% of the record title interest in Green Canyon Blocks 114, 158, 202, and 248, including Shell's Brutus and Gilder assets, for $425 million in cash. The firm, however, maintains an active presence in the US gulf.

Last month, Shell led all firms in central gulf Lease Sale 247, making 20 bids totalling $55.9 million, including the single-highest apparent bid of $24.1 million on Atwater Valley Block 64 as well as $5.1 million on Mississippi Canyon Block 845 (OGJ Online, Mar. 22, 2017).