Chappal Energies, an African Energy company has formally taken over the Nigerian assets of Equinor’s Nigerian assets, competing the acquisition process which had been on for quite a while.
The deal, which was previously agreed to and announced in November 2023, is worth around USD 1.2 billion and consists of a USD 710-million cash payment and contingent payments. The Nigerian regulators approved the transaction in November 2024.
The acquisition notably gives Chappal Energies 53.85% ownership of Oil Mining Licence (OML) 128, which includes a 20.21% stake in Agbami oilfield operated by Chevron. The company will also operate OML 129, a prospective mining licence.
Ufoma Immanuel, managing director of Chappal Energies, remarked the acquisition “brings immediate production and cashflow benefits.”
The sale is representative of a larger trend seen in Nigeria, where IOCs are divesting their mostly onshore and shallow-water assets in favour of deepwater opportunities, which reduce their exposure to issues such as oil theft. Unlike many divestments, the Agbami field is a major deepwater asset.
Source: The Energy Year
