Gabon President Brice Oligui Nguema has publicly committed to pre-empting the sale of Assala Energy to Maurel et Prom.
Maurel announced the acquisition of Assala in mid-August for $730 million. Around two weeks later, Nguema seized power in a coup following elections.
Acquiring Assala would be the first major step by the transitional government. It has mostly left the energy sector alone, with Nguema recently ceremonially opening Perenco’s Batanga gas plant.
The president’s speech, on December 31, highlighted domestic plans and the government’s efforts to meet people’s needs. Nguema, dressed in his military uniform, said the government would cut butane prices and provide more support for pensioners. He also set out more aspirational plans, for a new capital city and a new airport.
Nguema said the purchase of Assala was intended to increase the state’s share of revenues. The move, he said, would allow Gabon to “demonstrate its sovereignty in the oil sector, which is the heart of the economy”.
Cash flow
Maurel was to fund its purchase of Assala through increasing its existing bank loan and taking on a bridge loan. Pertamina, Maurel’s major shareholder, was backing the deal.
Under the Maurel deal, Gabon was already set to take a larger stake in Assala and receive an option for another 12.5% over the next five years.
Hannam Partners, in August, said the price Maurel paid would fall to around $300mn, based on cash flow and the effective date of the transaction. Hannam further said Assala produced around $500mn in free cash flow in 2022.
Maurel CEO Matthieu Thabault met Minister of Oil Marcel Abeke in early November, to discuss the Assala deal.
There have been rumours that Gabon was planning to pre-empt the sale since at least November.
Maurel has not yet commented on Gabon’s plans to pre-empt the sale. The company closed its acquisition of Wentworth Resources on December 21 and is ramping up its interest in Venezuela.
The French-based company has faced other challenges in Gabon. In September, local unrest forced Maurel to suspend operations at Lake Ezanga, which was only resolved when the oil ministry stepped in.