The Carlyle Group has agreed to acquire a stake of 30-40% in Spanish oil and gas company Compañía Española de Petróleos (Cepsa) from Mubadala Investment, based on an enterprise value of $12bn.
Cepsa, which is said to be the largest privately-owned integrated oil & gas company in Europe, has assets covering the full petroleum value chain, across more than 20 countries. The Spanish energy company also operates in the renewables sector.
Its assets include significant reserves contained in the offshore Umm Lulu and SARB fields in Abu Dhabi. The company was awarded 20% stake in the new Sateh Al Razboot (SARB) and Umm Lulu Concession from the Abu Dhabi National Oil Company (ADNOC) in February 2018 for a participation fee of $1.5bn.
Cepsa is also a major oil producer in Algeria and has operations in Central and South America and South East Asia. In Algeria, the company alongside Sonatrach is redeveloping the onshore Rhoude el Krouf (RKF) oilfield in Berkine basin, Algeria with an investment of around $1bn.
On the retail front, Cepsa has a network of service stations in the Iberian Peninsula and has an integrated energy offering that includes liquid fuels, gas and electricity to Spanish consumers.
The company is also the owner and operator of two refineries in Spain – the Gibraltar San Roque refinery and the La Rábida refinery. The two refineries are used for distilling crudes to transform them into products like diesel, gasoline, heating fuel, kerosene, and liquefied gas among others.
Carlyle International Energy Partners head Marcel Van Poecke said: “We look forward to building upon Cepsa’s growth path for the benefit of their customers, suppliers and employees.
“Our team has an established track record with a combination of energy sector, financial and operational capabilities as well as experience across the energy value chain from upstream through downstream, refining and marketing.”
Post-transaction, Mubadala Investment, which has been the company’s sole shareholder, will continue to be its majority shareholder.
Mubadala petroleum and petrochemicals CEO Musabbeh Al Kaabi said: “Mubadala has worked closely over the years with Cepsa’s management team to build a world-class fully integrated energy company.
“We now look forward to working in partnership with Carlyle which has a significant track record and energy sector capabilities, and with Cepsa’s management to further enhance and grow the business.”
The transaction is anticipated to be completed by the year end based on receipt of customary regulatory approvals.