The Carlyle Group’s portfolio firm Assala Energy has agreed to acquire Royal Dutch Shell onshore assets in Gabon for around $587m.
The deal will also include the assumption of $285m debt. The purchaser will make additional payments of about $150m based on production performance and commodity prices.
Assala is acquiring the assets with equity from two Carlyle funds, including Carlyle International Energy Partners (CIEP) and Carlyle Sub-Sahara Africa Partners (SSA).
As part of the agreement, Assala wiil acquire onshore oil and gas operations and related infrastructure from Shell in Gabon, which is a country along the Atlantic coast of Central Africa.
The deal includes the acquisition of five operated fields, comprising of Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou.
Assala wiil also purchase participation interest in four non-operated fields, including Atora, Avocette/M’Boukou, Coucal, and Tsiengui West, in addition to the associated infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal.
Last year, Shell had generated around 41,000 barrels of oil equivalent per day from onshore operations in Gabon. Shell Trading (STASCO) will continue to hold lifting rights from the assets for the next five years.
Around 430 local Shell employees will join Assala, as part of the deal.
Subject to certain conditions including various approvals, the deal is expected to complete in the middle of this year.
Shell upstream director Andy Brown said: “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.”