M&P, a French oil and gas company, has signed a deal to acquire Assala Energy, a British firm that operates upstream and midstream assets in Gabon, for $1.1 billion, the company announced on Tuesday.

The deal, which is subject to regulatory approvals, will boost M&P’s presence and production in Gabon, where it has been operating for over 15 years. The deal will also give M&P access to Assala’s midstream infrastructure, including the Gamba oil terminal and connected pipelines.

Assala Energy was formed in 2017 by Carlyle, a private equity firm, to buy some of Shell’s assets in Gabon. Assala produced 40.7 kbopd in the first half of 2023, with reserves estimated at 97 mmbbls as of December 2022.

M&P’s CEO Olivier de Langavant said: “The acquisition of Assala represents a step change for M&P. The combination of our portfolios provides the Group with a large operated base of long-life, low-cost onshore assets offering long-term visibility and substantial development potential in a stable country.”

The deal is expected to close between Q4 2023 and Q1 2024. M&P was advised by Morgan Stanley, Hannam & Partners, and Mandiri Sekuritas on the transaction.

Maurel & Prom in advanced talks for potential acquisition of Assala Energy Holdings