Shell Sells Gabon Onshore Interests in Debt-Cutting Drive
24 March 2017 - 9:04PM
Dow Jones News
By Ian Walker
LONDON--Oil major Royal Dutch Shell PLC (RDSB.LN) said Friday it
is selling its Gabon onshore interests for up to $737 million as
part of its continuing drive to reduce debt.
The assets are being bought by Assala Energy Holdings Ltd., a
portfolio company belonging to Carlyle Group LP (CG), for an
initial $587 million. The payment of a further $150 million depends
on production performance and commodity prices, Shell said, adding
that Carlyle will also take on debt of $285 million.
Shell expects to book an impairment charge of $53 million post
tax in its first quarter 2017 accounts.
The deal, which is subject to certain conditions and approvals,
is expected to close mid-2017, Shell said.
"Together with recent divestments in the U.K., Gulf of Mexico
and Canada, this transaction shows the clear momentum behind
Shell's $30 billion divestment program, and it helps us to
high-grade and simplify our upstream portfolio following the
acquisition of BG," Andy Brown, Shell's Upstream Director,
said.
Shell will continue to pursue opportunities in Sub Saharan
Africa, he said.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
March 24, 2017 05:49 ET (09:49 GMT)
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