Carlyle Offloads Gabon Oil Firm to Maurel & Prom for $730M

20 Aug, 2023

Carlyle Offloads Gabon Oil Firm to Maurel & Prom for $730M

Private equity firm Carlyle Group (CG.O) has reached an agreement to divest its Assala Energy, an oil and gas enterprise in Gabon, to French producer Maurel & Prom (MAUP.PA) for a substantial sum of $730 million. This transaction marks a significant step in the energy sector.

Carlyle's involvement in Assala dates back to 2017 when its non-U.S. energy arm, Carlyle International Energy Partners (CIEP), invested in the acquisition of Gabonese operations from Shell (SHEL.L) for $628 million. This move was part of Carlyle's strategy, post the 2014 oil price slump, to acquire assets from international oil companies and manage operations meticulously to enhance returns.

Interestingly, this sale closely follows another major deal in which Carlyle, along with partners, sold Neptune Energy, focused on the North Sea, for an impressive $4.9 billion to Italian energy entity Eni (ENI.MI) and its Norwegian unit Vaar (VAR.OL). These developments reflect a growing trend among companies to reinvigorate their oil and gas ventures due to the surge in energy prices propelled by events like Russia's Ukraine incursion.

Bob Maguire, co-head of CIEP, stated, "We're in a cycle now where this transaction, and our sale of Neptune, represent a shift in the macro environment whereby strategic owners are back looking for assets."

Maurel & Prom, headquartered in Paris, maintains oil and gas assets across Africa, Europe, and Latin America, including three licenses in Gabon. During the initial half of 2023, the company averaged 27,406 barrels per day (bpd) in production. This deal grants Maurel & Prom access to the strategically important Gamba oil export terminal and a promising pipeline of organic development opportunities. The company anticipates finalizing the transaction by the first quarter of the upcoming year, underscoring the dynamic landscape of the energy industry.