Assala Energy completes acquisition of Shell Gabon onshore assets for $628 million
Carlyle-backed Assala Energy has completed the acquisition of Shell’s onshore assets in Gabon, Africa, for a total of USD $628 million including an amount equivalent to interest.
The sale was announced on 24 March 2017 with an economic date of 31 December 2015. With this transaction, Assala Energy will assume debt of $285 million.
With headquarters in London and a leadership team led by Chief Executive Officer David Roux, Assala Energy was created by Carlyle as a new oil and gas exploration and production (E&P) company to focus on energy opportunities in Sub-Saharan Africa.
The company’s management team includes successful, Africa-experienced E&P professionals, many of whom have worked in Gabon previously.
This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon: five operated fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), participation interest in four non-operated fields (Atora, Avocette, Coucal, and Tsiengui West), as well as the associated infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal. Upon completion, local employees will transfer from Shell to Assala Energy.
Capital for this investment came from two Carlyle funds, Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in global oil and gas exploration and production, mid- and downstream, oil field services and refining and marketing in Europe, Africa, Latin America and Asia and Carlyle Sub-Saharan Africa Fund (SSA) a $698 million fund that invests in buyout and growth opportunities across Africa.
Marcel van Poecke, Head of Carlyle International Energy Partners, said: “With a geographic focus in Sub-Saharan Africa, Assala Energy is committed to being a safe, responsible and efficient energy operator and to being an active contributor to the Gabon economy.Assala Energy will also explore opportunities to invest in future projects that seek to create sustained long-term value for the local economy. Assala Energy plans to be a forward-looking partner, responsive to local market conditions. Our team of energy industry specialists at Carlyle has extensive experience in Gabon and we look forward to contributing to the sustainable economic future for the country’s energy industry.”
David Roux, CEO of Assala Energy, said: “Assala Energy will build on Shell’s 55 years of work in Gabon. We will invest to secure and increase production levels, and extend field life cycles. We will carry out responsible operations through best-in-class safety, environmental, social performance and transparent stakeholder partnerships. We are committed to long-term, sustainable growth and creating value. We look forward to working with the Government of Gabon, our staff and partners on this exciting opportunity.”
Eric Kump, Head of Carlyle Sub-Sahara Africa Fund, added: “We are proud to be leading one of the largest foreign direct investments into Gabon and to sharing our experience of investing in Sub-Sahara Africa with David Roux and the Assala Energy team.”