Carlyle to sell Assala Energy to Etablissements Maurel & Prom SA: Key details unveiled

Global investment behemoth, Carlyle (NASDAQ: CG), has broadcasted its decision to offload Assala Energy, an upstream oil exploration and production entity stationed in Gabon, to Etablissements Maurel & Prom SA (M&P), a French oil company. This is significant for stakeholders, considering M&P’s listing on Euronext and its prominence in the oil and gas exploration arena.

Assala Energy’s Evolution Under Carlyle

Having been under Carlyle’s banner since 2017, Assala Energy’s trajectory has been noteworthy. Initially, it came under Carlyle International Energy Partners, a private equity fund emphasizing energy potentials across Europe, Africa, Latin America, and Asia. Assala Energy, under Carlyle’s aegis and in tandem with its own leadership, morphed into a formidable stand-alone entity, adding reserves, refining production facilities and infrastructure, and even initiating strategic M&A.

Transformation of Assala Energy: From Carlyle’s Acquisition to Sale to Etablissements M&P. Photo courtesy of Assala Energy.

Through strategic investments exceeding $1.3 billion during Carlyle’s stewardship, Assala Energy burgeoned into a front-runner among independent exploration and production companies in West Africa. Key milestones include a rise in net production by about 30% to roughly 45 kbbl/d. Moreover, as of the conclusion of 2022, Assala Energy showcased a fortified reserve life, expanding from five to eight years, combined with an impressive reserves replacement ratio, which clocked over 160% during Carlyle’s investment period. By 2020, Assala Energy had reignited its exploration activities, eyeing long-term growth.

Assala Energy’s Drive for Sustainability

The collaboration between Carlyle and Assala Energy wasn’t solely about growth; sustainability played a pivotal role. Since 2020, Assala Energy has tapered its Scope 1 and 2 emissions by an estimated 20%, courtesy of efforts like methane leak detection, gas re-injection, curbing flaring, and shutting down wells with high gas production.

Voices from the Inside: CEO and Co-Heads Speak

David Roux, Assala Energy’s CEO, expressed gratitude towards Carlyle for its unwavering support during Assala’s evolution, lauding the team’s exceptional adherence to international ESG benchmarks. “We are proud of our accomplishments so far and look forward to our business’s next stage of growth. The union with M&P will be formidable,” Roux affirmed.

Bob Maguire and Guido Funes Nova, Co-Heads of Carlyle International Energy Partners, also shared their perspectives, highlighting Assala Energy’s remarkable metamorphosis, dedication to sustainable economic contributions in Gabon, and future potential.

Behind the Deal: Advisors and Consultants

For this pivotal transaction, Carlyle entrusted Citi for financial advisory and tapped into Latham & Watkins for legal counsel.