This has been the important economic decision of transitional authorities in Gabon, which decided to nationalize the purchase of Assala Energy from the American investment firm Carlyle. It is an acquisition of such magnitude as has not happened since the start of the transition period ten months ago. Assala Energy is the second-biggest oil producer in Gabon, imminently after the French group Perenco.
It is what the French company Maurel & Prom was ready to acquire a year ago. The military authority exercised its right of pre-emption and outbid them at purchase. In reality, all the leaders of transition took part in the celebration for the success of the acquisition, at the presidential palace where they all appeared on the presidential esplanade on July 1st.
During the ceremony, acquisition documents were handed to the transition president, Brice Clotaire Oligui Nguéma, by Marcellin Simba Ngabi, the Director General of Assala Energy. According to Nguema, in his own words, which he used while addressing the issue, “This proud acquisition, at which we can only rejoice, will finally increase our revenues in order to undertake many development projects. Undoubtedly, it is the form for asserting our sovereignty.”
It paid 648 billion CFA francs for the purchase of Assala Energy from Carlyle, equivalent to about 1.3 billion dollars. The details of the financial package remain secret. Sylvain Mayabith of the National Organization of Oil Employees’ Secretary-General, Onep, warned that the group will have to be strictly managed if it is to be viable. “We must not be content with owning an oil company and simply extracting money for the country’s investments; high governance standards must be established and maintained,” he stated.
Since gaining independence in 1960, multinationals have been in control of oil production in Gabon. Former President Ali Bongo created a national oil company in the early 2010s, but the management of the firm was bedeviled by far-reaching financial scandals.
The new deal for Assala Energy is one such mile marker on the pathway to economic sovereignty and sustainable development, reflective of Gabon’s aspirations for clearer control over natural resources and the economy.