Signal: Maurel & Prom purchases 100% of Assala Energy
The acquisition encompasses Assala's subsidiaries and assets that mainly operate in Gabon.
French oil company Maurel & Prom (M&P) has revealed its acquisition of the entire ownership of Assala Energy, an oil company registered in the Cayman Islands. The purchase was made from Carlyle Group, a private equity fund.
The acquisition encompasses Assala's subsidiaries and assets that are focused on Gabon.
M&P has been actively extracting oil in Gabon for over 15 years. Presently, the company operates three separate ventures in the nation, including the Kari and Nyanga-Mayombe exploration projects, both entirely owned by M&P. Additionally, M&P serves as the operator of the Ezanga project, owning 80% of it, and acts as the explorer with a 91.43% ownership stake.
During the initial six months of 2023, Assala effectively extracted over 40,000 barrels of oil daily from its nine active projects. Once the agreement is finalized, the collaborative efforts of Assala and M&P will result in a remarkable production of over 56,500 barrels per day solely in Gabon.
M&P stands to gain advantages in terms of improved operations and cost savings through this acquisition. As part of the agreement, M&P will take ownership of Assala's Gamba oil export terminal and its accompanying pipeline infrastructure. This will give M&P full control over the transportation and distribution of their oil production in Gabon.
M&P's CEO, Olivier de Langavant, said that the purchase of Assala marks a significant change for M&P. The merger of our collections presents the company with a substantial collection of enduring, inexpensive onshore resources that offer a clear outlook for the future and have significant potential for growth. This is all happening in a reliable nation where M&P has been doing business for more than 15 years.
The acquisition further enhances M&P's connection with the government of Gabon, resulting in an increment of its ownership in Assala's subsidiary, Assala Gabon, from 25% to 27.5% in this agreement. Moreover, the government will have the option to raise its stake by 12.5% within a span of five years.
M&P acquired the entire ownership of Assala and Assala's interests in all its affiliated companies for a sum of $730 million in cash. M&P has the flexibility to utilize debt financing for this transaction. The completion of this agreement is expected by the fourth quarter of 2023.
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