Gabon to take over Carlyle's Assala oil assets in deal that preempts sale: sources

Carlyle has signed a share purchase agreement with Gabon's national oil company for the US private equity firm's oil assets in the country as Gabon's military junta pushes ahead with an audacious pre-emption bid, two sources told S&P Global Commodity Insights.

France's Maurel & Prom had agreed to purchase the 45,000 b/d Assala assets from Carlyle in August 2023 for $730 million. But at the end of November, state-owned Gabon Oil Company announced it would use its pre-emption rights to acquire Assala itself.

The West African government subsequently held talks with traders, including Vitol, in a bid to raise an estimated $1.3 billion to buy the assets and $600 million of debt.

However, people close to the transaction said GOC – which is believed to be low on funds – was unlikely to raise the required financing. The company only operates a single field, Mbouma, with output of under 1,000 b/d, according to S&P Global.

"The key problem is the financing. No one credible would fund it," said one source at the time. "[GOC] can definitely raise debt on the back of the asset, zero question about it. Can they fund the full price? It's impossible," said another source with knowledge of the talks.

However, two sources told S&P Global that the pre-emption was going ahead, and that an SPA had been signed between Carlyle and GOC on Feb. 15.

It was not clear whether the financing issue had been fully resolved. The government still needs to approve the SPA, a source said.

Pertamina-backed M&P declined to comment. Carlyle did not respond to a request for comment, nor did a spokesperson for Gabon's government. GOC could not be reached.

Carlyle purchased the assets from Shell for $587 million in 2017 and plunged hundreds of millions of dollars into the fields, increasing production by a third.

Assala holds seven onshore production licenses – six of them operated – a pipeline network and the Gamba export terminal. The company controls a significant share of Gabon's key Rabi crude, which is medium-sweet and popular among refiners in Europe, Israel and Asia.

Analysts say president Brice Oligui Nguema -- who ousted Ali Bongo in a military coup in August to end the Bongo family's six-decade rule -- is hoping to boost his popularity ahead of elections in 2025 or 2026, with energy sovereignty a potential vote-winner.

In a New Year address, Nguema said the pre-emption would "demonstrate [Gabon's] sovereignty in the oil sector, which is at the heart of the economy."

Oil provides most of the OPEC-member's revenue, but output has slipped from 365,000 b/d in 1996 to 210,000 b/d last year, according to the Platts OPEC Survey from S&P Global, due largely to underinvestment.