Shell Sells Gabon Onshore Interests in Debt-Cutting Drive

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 [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

March 24, 2017 05:49 ET (09:49 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.