Carlyle to sell Assala Energy to Maurel & Prom
- Over the course of its ownership, Carlyle has worked with the Assala management team to support the company’s growth and rejuvenate its assets, investing in operations, infrastructure and M&A
- Under Carlyle’s ownership, Assala increased its net production by approximately 30% to 45 kbbl/d and its reserves life from five to eight years
Libreville, Gabon - Global investment firm Carlyle (NASDAQ: CG) today announced that it has agreed to sell Assala Energy (“Assala”), 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.
Thanks to significant investment (in excess of $1.3 billion over the Carlyle investment period) and operational excellence, Assala has been transformed into one of the leading independent exploration and production companies in West Africa. Since Carlyle’s acquisition, Assala has increased net production by c. 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.
Carlyle and the Assala management team have worked closely together to accelerate the decarbonization of the company. Since 2020, Assala has reduced its Scope 1 and 2 emissions by approximately 20%, primarily through methane leak detection and prevention, gas re-injection, the reduction of flaring and the shutting in of wells with excessive gas production.
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 decarbonizing 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.
Assala is an oil and gas exploration and production company, with operations in Gabon. Assala’s business model is to invest in mid-life and mature assets, improving operational efficiency and production levels, while responsibly extending field life cycles through reserves replacement and in compliance with international best practice Environment, Social and Governance standards. In line with Assala’s Values and corporate culture, the company is committed to contributing to the national and local economies of its host countries, while complying with its international obligations on transparency.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $385 billion of assets under management as of June 30, 2023, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
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