Maurel & Prom: Share Purchase Agreement Signed for the Acquisition of Assala

To our esteemed investors and analysts, 

Etablissements Maurel & Prom S.A. (M&P), affiliation of Subholding Upstream Pertamina has embarked on a transformative acquisition that solidifies its position as a leading onshore operator in Gabon. The acquisition involves Assala Energy Holdings Ltd., encompassing full ownership of its upstream and midstream assets portfolio in Gabon. The consolidation yields several benefits:

1. Transformational acquisition: Assala's consolidated working interest production of 40.7 kbopd in H1 2023, leading to proforma M&P output of 67.8 kboepd, with 56.5 kbopd from Gabon, addition of 97 mmbbls of consolidated working interest 2P reserves by December 31, 2022, resulting in proforma M&P reserves of 270 mmboe, with 218 mmbbls from Gabon & Strengthened partnership between M&P and the Gabonese government.
2. Value Accretive Growth: Post-acquisition, M&P anticipates substantial growth opportunities through workforce integration, operational and financial optimizations, access to integrated midstream networks, and a pipeline of organic development ventures.
3. Financial Details: The acquisition is financed through a fully supported low-cost debt arrangement. The transaction is valued at $730 million, funded via an enhanced bank loan facility ($183 million) and an acquisition bridge facility (up to $750 million) backed by M&P's controlling shareholder, Pertamina.
4. Closing and Approvals: The transaction is expected to conclude between Q4 2023 and Q1 2024, contingent on approvals from the Gabonese government and CEMAC authorities

Olivier de Langavant, M&P's CEO, emphasizes the acquisition's significance, underlining the amalgamated potential, operational stability, and value creation for shareholders. Advisors played pivotal roles in facilitating the transaction.

This acquisition promises transformative benefits for M&P, establishing enduring stability, operational expansion, and strategic prominence within the industry. The synergy between Assala's assets and M&P's Gabon presence offers substantial operational and financial optimization potential. M&P's acquisition will provide an extensive footprint, strategic infrastructure access, and skilled management, aligning with its commitment to ESG goals and partnership with the Gabonese government.

The transaction's financial components comprise an economic effective date, a transaction consideration of $730 million, continuation of Assala's existing RBL facility, debt upsize, an acquisition bridge facility, and backing from Pertamina. The increase in M&P's debt facility, effective by August 2023, is independent of the transaction's completion.

Furthermore, we encourage you to visit the Pertamina website to have our latest news and Investor information: https://www.pertamina.com/en/Investor-relations 

We sincerely appreciate your continued and profound interest in Pertamina. If there any questions regarding the following material or anything related to Pertamina’s scope of business, please do not hesitate to contact the Pertamina Investor Relations Team through pertamina_ir@pertamina.com

Best regards,
Pertamina Investor Relations