Linus Unah – Fourth Estate Contributor
London, United Kingdom (4E) – London-based Assala Energy, a portfolio company of Washington-headquartered asset manager Carlyle Group, has announced that it would buy Shell’s onshore assets in Gabon, Africa, for $587 million.
Under the deal, Assala Energy will also assume associated liabilities, including a loan of $285 million.
Assala Energy was created by Carlyle as a new oil and gas exploration and production company to focus on energy opportunities in Sub-Saharan Africa, according to the news release announcing the deal.
The transaction is expected to be completed in summer 2017.
Production from the assets in Gabon is about 60,000 barrels of oil per day operated and 40,000 barrels of oil per day net, the latter reflecting production volumes both from Shell’s own as well as third party-operated fields.
Upon completion of the transaction, all Shell Gabon local employees will transfer to Assala Energy.
“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,” David Roux, CEO of Assala Energy, said in a statement.
“We are committed to ensuring long-term, sustainable growth and creating value. Assala Energy will invest responsibly to secure and increase production levels as well as oilfields’ life.”
In addition to the consideration, the transaction accommodates for a potential additional payment of a maximum of $150 million, subject to commodity price and production performance.
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