GABON : The State acquires the company Assala Energy
[abelainfo.com] - The Gabonese government has carried out the full buyback of the oil company Assala Energy, thus becoming the second national oil producer. This transaction, facilitated by a partnership with the Swiss trader Gunvor, marks an important step in Gabon's desire to strengthen its control over its strategic energy resources.
On June 21, 2024, Gabon finalized the buyback of the shares of Assala Energy, the country’s second largest oil operator, from the American fund Carlyle. This acquisition, for an undisclosed amount, allows Gabon to take control of more than 45,000 barrels of daily production and an annual turnover exceeding 600 billion CFA francs.
According to available information, the Swiss company Gunvor, specialized in trading, transporting and storing petroleum products, has pre-financed this operation on behalf of the Gabonese government. The precise repayment terms, particularly in terms of interest rates and payment methods (in dollars or barrels), have not yet been communicated.
Although the exact amount of the transaction has not been revealed, some sources estimate that it could have approached $1.3 billion, significantly more than the $730 million previously proposed by the French company Maurel & Prom for the same asset. This price difference underscores the determination of the Gabonese authorities, led by the transition president Oligui Nguema, to regain control of this strategic resource.
The buyout of Assala Energy is part of Gabon’s stated desire to strengthen its sovereignty over its hydrocarbons. In February 2015, an agreement had already been reached for the Gabonese state to buy back 75% of the oil company’s shares. With this acquisition, Gabon now becomes the second national oil producer, after long being dependent on foreign companies for the exploitation of its resources.
This operation was carried out from start to finish by Marcelin Simba Ngabi, advised by the Paris branch of the law firm Norton Rose Fullbright. The keys to Assala Energy will soon be transferred to Libreville, marking the culmination of this strategic transaction for Gabon.
Although the recent downgrade of the country’s sovereign rating may have raised concerns, the Minister of Economy and Participations, Mays Mouissi, welcomed this acquisition, seeing it as a way for Gabon to better control its oil production and marketing. This takeover is part of a broader desire to strengthen Gabon’s economic independence and sovereignty.
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