Africa Oil & Gas: Gabon Approves Shell’s Disposal of Assets

The government of Gabon has approved the sale of Shell’s offshore assets to Assala Energy Holdings. The transaction is valued at $587 million and covers five production fields, and an oil pipeline between Rabi, Gamba, and the South Gamba oil terminal.

The green light for the disposal of Shell’s assets to Assala marks the transfer of skilled labor on assets from Shell to Assala Energy with the 430 Shell workers being absorbed by the US buyer.

“With this disposal of assets, the government is keen to revive production in the oil sector. We want to ensure that in the months and years to come, oil production is in full swing at the Gabon level,” said Gabonese minister Pascal HouangniAmbouroue.

Shell will continue to develop its activities with particular emphasis on gas production, as low oil prices seriously affect its finances.