Royal Dutch Shell has agreed to sell its onshore assets in Gabon to Assala Energy in a deal worth US$587mn, according to law360
Under the deal, Assala Energy, whose headquarters are in London, UK, will pick up assets which produced 41,000 bpd last year. Assala will also assume associated liabilities, including a loan of US$258mn, in addition to the purchase price.
Andy Brown, Shell's upstream director said in a statement, "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's consistent with Shell's strategy to concentrate our upstream footprint where we can be the most competitive. Shell will continue to pursue opportunities in sub-Saharan Africa."
CEO of Assala Energy, David Roux, said in a statement, that, "Assala Energy will build on Shell's 55-year legacy in Gabon by continuing to deliver responsible operations through best-in-class safety, environmental and social performance and transparent stakeholder partnerships. We are committed to ensuring long-term, sustaining growth and creating value."
"Assala energy will invest responsibly to secure and increase production levels as well as oilfields' life. We look forward to working with the government of Gabon, the Gabon staff and our partner on this exciting opportunity" Roux continued.
