In a move signaling a major shift in its global operational focus, Norwegian energy powerhouse Equinor has concluded the sale of its Nigerian business segment, including a significant stake in the Agbami oil field, to Nigeria’s own Chappal Energies.
This deal sees Chappal Energies acquiring a 53.85% interest in Oil Mining Lease OML 128, which includes a 20.21% share in the Chevron-operated Agbami field. Since initiating its Nigerian operations in 1992, Equinor has been instrumental in the development of the Agbami field, Nigeria’s premier deep-water oil field. The field, which began production in 2008, has since yielded over a billion barrels of oil, generating substantial value for its stakeholders and the broader Nigerian economy.
Nina Koch, Senior Vice President for Africa Operations at Equinor, highlighted the strategic nature of this divestiture. “This transaction not only capitalizes on our long-term involvement in Nigeria but also aligns with our strategy to streamline our international oil and gas portfolio, focusing on key areas,” said Koch. She commended Chappal Energies for their dedication to further enhancing these assets and their potential positive impact on Nigeria’s economic landscape.
Ufoma Immanuel, Managing Director of Chappal Energies, voiced his company’s ambition and commitment following the acquisition. “Assuming the mantle from Equinor after their thirty-year journey in Nigeria is a momentous step for us. Our core values center around creating value, environmental stewardship, and active community engagement,” Immanuel stated. He expressed confidence in the company’s ability to drive sustainable growth and contribute significantly to Nigeria’s ongoing economic development.
The completion of this landmark transaction is contingent upon fulfilling various conditions, including securing necessary regulatory and contractual consents. This acquisition establishes Chappal Energies as a formidable entity in the Nigerian oil industry and reflects a broader trend of local enterprises gaining prominence in this sector.
