Global investment firm Carlyle 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, which has seen Carlyle invest in excess of $1.3bn in total in the business, 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 c30% 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.
Citi acted as financial advisor and Latham & Watkins as legal advisor to Carlyle on this transaction.