Royal Dutch Shell will sell its onshore oil assets in Gabon to a unit of Carlyle Group LP for $587 million, taking it closer to its $30 billion divestment target.

Carlyle’s unit Assala Energy Holdings Ltd. will also take on $285 million of debt from Shell’s Gabon unit and will make an additional payment of as much as $150 million depending on production performance and commodity prices. The transaction will also result in Shell taking a $53 million impairment charge this quarter, the company said in a statement Friday.
Shell is about two-thirds of the way through its divestment target, due to be completed by the end of next year. The money from the sales will be used to pare down debt taken to fund its record purchase of BG Group Plc last year. It sold $7.25bn of oil sands assets in Canada this month and offloaded a large chunk of UK. North Sea positions in January. It is also planning to sell fuel stations and a refinery in Argentina.

The sale in Gabon “is consistent with Shell’s strategy to concentrate our upstream footprint where we can be most competitive,” Andy Brown, director for the upstream business, said in the statement. “Shell will continue to pursue opportunities in sub-Saharan Africa.”

The transaction is subject to conditions including various approvals and is expected to close in the middle of this year.

Carlyle will buy all of Shell’s onshore oil and gas operations and related infrastructure in Gabon. These include five operated fields, interests in four others, a pipeline system and an export terminal, according to the statement. Shell’s share of production from the fields was about 41,000 barrels of oil equivalent a day in 2016.

Shell’s trading unit will retain the rights to take the oil for the next five years, according to the statement. The company will continue to hold licenses for two blocks located off Gabon’s coast.

In March last year Royal Dutch Shell announced it is restructuring its business portfolio by divesting its assets.

Shell expects to divest $30 billion worth of assets in 2016–2018. According to media reports, Shell has appointed financial advisory and asset management company Lazard to identify assets and potential buyers for its sales. Investment companies such as Bank of America Merrill Lynch (BAC) and Morgan Stanley (MS) are reported to have been appointed for the divestment program.

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