The Gabonese state has signed a deal to secure ownership of an oil exploration company in the country, edging out Maurer & Prom, a French energy giant that had previously reached an agreement with the owner.

U.S. private equity firm Carlyle agreed to sell Assala Energy, its oil exploration and production company located in Gabon, to M&P for $1.3 billion in August 2023.

The transaction expected to close in the first quarter of 2024 included a credit facility running into $600 million and $750 million in acquisition bridge facility.

Latham & Watkins advised Carlyle while both Herbert Smith Freehills and Bracewell acted for M&P, according to statements issued by the companies at that time.

However, in a twist of events, the Gabonese government has signed a purchase agreement with Carlyle to take over the oil company, exercising its pre-emption rights.

"On February 15, I chaired the signing ceremony of the agreements marking the purchase of the Assala Company by the Gabonese State," Gabon's interim President, Brigadier General Brice Oligui announced on social media platform X.

"This operation will allow Gabon, among other things, to raise its GDP, increase its revenues and mark its sovereignty in the oil sector, which represents the heart of the national economy."

The terms and conditions of the new share purchase agreement are similar to the one signed with M&P earlier, people familiar with the transaction told Law.com International.

Carlyle has not responded to requests for comments but M&P said the latest agreement with the Gabonese national oil company supersedes the share purchase deal it signed with the private equity firm in August.

"M&P confirms and reiterates its wish to remain a trusted partner of the Republic of Gabon, as evidenced by its presence and its projects in the country for nearly 20 years now," the French company added in its statement.

There has been speculation that the change in the acquisition was caused by the political situation in Gabon, especially since the junta toppled the civilian government last year but lawyers on the deal said the Central African country was within its rights.

Eimear Murphy, Bracewell's energy partner that led the legal team for M&P and Latham & Watkins partner, Simon Tysoe said both firms will not be commenting on the recent turn of events.

Herbert Smith Freehills did not comment by the time of publication.