Deal Summary
The Carlyle Group, through its non-U.S. energy investment arm, Carlyle International Energy Partners (CIEP), and Ramphastos Investments, have completed an agreement to sell their stakes in Mazarine Energy, a Tunisia-focused oil and gas producer, to the company’s CEO Edward van Kersbergen. Mazarine, founded in 2013, specialises in oil and gas exploration, primarily in Tunisia and Romania. Carlyle invested $500 million in the company in 2016 as part of its strategy to capitalise on opportunities in the oil and gas sector following the 2014 decline in oil prices. However, this sale reflects Carlyle's desire to shed some of its heavy carbon assets in favour of investments that align with the global transition towards low-carbon energy sources. For Ramphastos Investments, a Dutch private equity firm, Mazarine was its first African investment, which was made in 2013. The sale to van Kersbergen highlights his commitment to Mazarine’s long-term growth, particularly as he seeks
Deal Rationale
The transaction reflects a strategic shift for Carlyle Group as it reduces its fossil fuel exposure while continuing to invest in the energy sector. With the growing global demand for renewable energy and increasing investments in sustainable projects across North Africa, the timing of this sale allows Carlyle and Ramphastos to capitalise on Mazarine Energy's enhanced valuation. This growth stems from Mazarine's evolution from a pure exploration company into a full-cycle energy business, with a diversified portfolio spanning traditional oil and gas operations and renewable energy ventures. Additionally, the transaction allows for continuity in leadership, empowering CEO Edward van Kersbergen to pursue an ambitious growth strategy for the company. Mazarine's expansion into renewable energy aligns with Tunisia’s national efforts to reduce greenhouse gas emissions by 41% by 2030 to meet its Nationally Determined Contributions (NDC) from the Paris Agreement.
- Value Creation: Carlyle Group and Ramphastos Investments have effectively utilised their capital to facilitate Mazarine Energy's strategic acquisition of valuable oil and gas assets in Tunisia and Romania, significantly enhancing its operational footprint and growth potential. The investment enabled Mazarine to secure the Zaafrane Exploration Permit, where the acquisition of 330 km² of 3D seismic data confirmed drilling targets. This led to commercial oil and gas discovery, with production rates reaching 4,000 barrels per day (bpd) from one well and 1,000 bpd from another.
Additionally, the partnership supported Mazarine in securing the Douiret Prospection Permit, which involved a $2.5 million investment in seismic data acquisition and geological studies, further strengthening its exploration capabilities. The Ghrib Concession, a joint venture with Établissement Tunisien d'Activités Pétrolières (ETAP), Tunisia’s national oil and gas company, commenced production in October 2017, reaching output rates exceeding 2,000 barrels per day. In Romania, the capital facilitated the acquisition of multiple onshore oil and gas fields from OMV Petrom, alongside initiating workover programmes to optimise production.
This strategic deployment of capital strengthened Mazarine's asset base, enabling the company to seize opportunities across conventional and renewable energy sectors, thereby delivering substantial value to its investors. Under their leadership, Mazarine initiated its first renewable energy venture—a 10 MWp solar PV project in Feriana, Tunisia. Awarded in 2020, the project is supported by a 20-year power purchase agreement (PPA) with the state utility, Société Tunisienne de l’Électricité et du Gaz (STEG). Following the final investment decision, construction is set to commence by year-end 2024, with commissioning planned for 2025. This initiative underscores Mazarine’s commitment to diversifying its energy portfolio, aligning with global trends towards sustainable solutions, and positioning the company advantageously within the evolving energy landscape.
- Exit Assessment: This divestment aligns with Carlyle's broader strategy of recalibrating its energy investments to focus on assets that better support global sustainability goals. By exiting Mazarine Energy, Carlyle frees up capital to invest in companies with more advanced portfolios in natural gas—seen as a pivotal transition fuel—and renewables. Notable examples of this pivot include Carlyle's sale of Neptune Energy in 2023 (finalised in Q1 2024) and Assala Energy in Gabon in 2021. This approach is further evidenced by Carlyle's acquisition of substantial gas assets in Egypt from Energean in June 2024, including the Abu Qir gas hub, one of the region's largest energy infrastructure projects. These moves demonstrate Carlyle's strategy to leverage natural gas's role in the clean energy transition while positioning itself for the growing market demand for ESG-focused investments. Moreover, Mazarine Energy's evolution from a traditional exploration firm to a diversified energy player, now incorporating renewables, enhances its attractiveness for future investors seeking exposure to conventional and sustainable energy opportunities.
About the Fund Manager
The Carlyle Group, founded in 1987 and listed on NASDAQ, is a global investment firm overseeing $447 billion in assets across three business segments and 612 investment vehicles. Its Global Private Equity segment, valued at $169 billion, includes over 280 active portfolio companies. Through its 2013 vintage fund, Carlyle International Energy Partners (CIEP), the firm has targeted energy investments across Europe, Africa, Asia, and Latin America, focusing on exploration, production, refining, and energy services. Emphasising natural gas as a transitional fuel, CIEP recognises its role in meeting immediate energy demands while supporting a shift to sustainable energy. In Sub-Saharan Africa, Carlyle launched Boru Energy in 2019 to acquire and optimise oil and gas assets, leveraging operational efficiencies, technological advancements, and improved management practices to enhance asset value and contribute to regional energy development.
Ramphastos Investments is a private equity firm founded in 1994 and is headquartered in Amsterdam, Netherlands with a portfolio of 20 companies representing $1 billion in revenue. It has a diversified portfolio spanning various sectors such as financial services, retail, gaming, energy, and advanced manufacturing, and its portfolio includes companies at different life cycle stages such as start-ups, early-stage companies, medium-sized companies with high-growth potential and mature companies.
