Norwegian energy giant Equinor announced the decision to end its almost 31-year business partnership with Nigeria after finalizing the sale of its oil assets valued at $1.2 billion to Chappal Energies.
The sale of its assets was completed on December 6, 2024, as stated by the company.
The total equity production from the assets has been, on average, 18,700 barrels of oil per day, respectively, in the first three quarters of 2024.
As a result of the agreement, Chappal Energies now owns 53.85% of Oil Mining Lease (OML) 128, including a unitized 20.21% interest in the prolific Agbami oil field operated by Chevron.
“With this exit, we realize the value and execute on our strategy to focus the international portfolio, and in combination with recent acquisitions and investments in our competitive projects, we seek to sustain long-term production and profitability,” says Philippe Mathieu, executive vice president for international exploration and production in Equinor.
“Azerbaijan and Nigeria have been important countries in our international portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large. I would like to thank them and our employees in Azerbaijan and Nigeria for their great work and dedication over the years and wish our people well in the transition of their professional journey,” Mathieu added.
Chappal’s Reaction to the Deal
On its part, Ufoma Immanuel, Managing Director of Chappal Energies,said the deal will further impact sustainable growth in Nigeria’s oil and gas sector.
Immanuel said:
“We are excited to take over the baton from Equinor after three decades of enduring legacy. We are confident in our ability to make a lasting impact and are committed to fostering sustainable growth and contributing to Nigeria’s economic prosperity now and in the future.”
Equinor has been in Nigeria since 1992.
The company has a 20.21% stake in the Agbami oil field and has drilled 10 wells with a 40% discovery rate and invested more than US$3.5 billion.
The $3.5 billion Agbami oilfield project is one of Nigeria’s largest deepwater developments, spanning across oil mining lease (OML) 127 and OML 128, approximately 354 km southeast of Lagos and 112 km offshore Nigeria, in the central Niger Delta.
The divestment of assets and exits from operations in Nigeria were first announced in 2023, and according to the multinational oil corporation, the sale of the assets is consistent with its plan to optimize its oil and gas holdings.
