Carlyle exits investment in Gabon
Global investment firm Carlyle has agreed to sell Assala Energy, an upstream oil exploration and production company operating in Gabon, to Etablissements Maurel & Prom SA (M&P), an oil and gas exploration and production company listed on Euronext.
Carlyle invested in Assala in 2017 through Carlyle International Energy Partners, a private equity fund that invests in energy opportunities in Europe, Africa, Latin America and Asia. During its period of ownership and in partnership with the Assala management team, Assala has become a successful stand-alone company, adding reserves, upgrading production facilities and infrastructure, and executing strategic M&A.
Since Carlyle’s acquisition, Assala has increased net production by about 30% to approximately 45 kbbl/d and, based on current production, has extended reserve life from five to eight years at the end of 2022, with a reserves replacement ratio of over 160% over the investment period. Assala also resumed exploration activity in 2020 to support the company’s longer-term growth.
David Roux, CEO of Assala said, “We want to thank Carlyle for its financial and strategic support throughout Assala’s growth journey, from the initial carve out from Shell in 2017 to the successes of higher production and reserves growth, which were delivered to best practice and international ESG standards by our exceptional team. We also want to thank the Government of Gabon for the support it provided throughout this intensive investment and redevelopment period. We are proud of our accomplishments so far and look forward to our business’s next stage of growth. The combination with M&P will create a great platform, with its business anchored in Gabon and a continued focus on creating value for its employees, local communities, governments and shareholders.”
Bob Maguire, co-head of Carlyle International Energy Partners said, “We are proud to have worked alongside David and his team in the transformation of Assala over the past six years. By investing in the company’s facilities and infrastructure to increase production and reserve life – while at the same time decarbonising its operations – Carlyle has helped Assala become a responsible operator, employer and partner and has enabled it to contribute significantly to the sustainable economic future of Gabon’s energy industry.”
Guido Funes Nova, co-head of Carlyle International Energy Partners said, “Our investment in Assala is a great example of how Carlyle works in partnership with management teams to deliver long-term value from mature assets for the benefit of our investors as well as the local economy and communities, while reducing emissions intensity. Assala is now one of the most efficient and skilled operators of mature onshore assets in Sub-Saharan Africa, with a long runway for future sustainable value creation.”
Citi acted as financial advisor and Latham & Watkins as legal advisor to Carlyle on this transaction.
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