Carlyle Group has bought Royal Dutch Shell Plc's (NYSE: RDS.A) onshore assets in Gabon for $587 million as the world's largest private-equity fund expands in the global oil and gas sector.
For Shell, the deal marks a further step in a $30 billion asset disposal program to help cut debt after its $54 billion acquisition of BG Group last year. The Anglo-Dutch oil company has sold assets for more than $15 billion since 2016.
Shell's Gabon assets will be incorporated into Carlyle-backed Assala Energy, which is led by former Tullow Oil executive David Roux and will focus on energy opportunities in sub-Saharan Africa, Carlyle said in a statement March 24.
The assets operated by Shell produce about 60,000 barrels of oil equivalent per day (Mboe/d), of which 40 Mboe/d go to the company. Under the deal, which is expected to close in the summer, Assala Energy will assume a debt of $285 million.
For Shell, the transaction will result in an impairment charge of $53 million after tax which will be taken in the first quarter of 2017, it said in a separate statement. About 430 local Shell employees will become part of Assala Energy.
The capital for the investment will come from Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in global oil and gas E&P, and the $698 million Carlyle Sub-Saharan Africa Fund (SSA).
Recommended Reading
Enterprise Declares Quarterly Cash Distribution
2024-01-08 - Enterprise Products Partners’ distribution will be paid Feb. 14 to common unitholders of record by Jan. 31.
Dorchester Minerals Announces Retirement of James E. Raley
2024-01-05 - Dorchester’s board designated Raley as manager emeritus in recognition of his service.
TurningPoint Energy Names Naini as President
2024-01-09 - Salar Naini, who previously served as executive vice president of business development for TurningPoint, will lead the company’s daily business operations.
Ovintiv Names Sippy Chhina to Board of Directors
2024-01-12 - Chhina recently retired as a partner at services firm Deloitte Canada LLP.
Vast Appoints Two Additional Directors to Board
2024-01-12 - Vast’s appointment of Peter Botten and Tom Quinn brings the board’s recently expanded size to seven members.