Equinor exits Nigerian oil sector, sells stake to Chappal Energies

Equinor has reached an agreement to sell its Nigerian business, including a 53.85% stake in oil and gas lease OML 128, to Chappal Energies. This significant transaction includes a 20.21% share in the Agbami oil field, currently operated by Chevron.

Equinor’s Three-Decade Legacy in Nigeria

Since entering Nigeria in 1992, Equinor has been instrumental in the development of Agbami, Nigeria’s largest deep-water field. Since its production commencement in 2008, Agbami has produced over 1 billion barrels of oil, contributing substantially to both the partners and the Nigerian society.

Strategic Realignment by Equinor

Nina Koch, Equinor’s Senior Vice President for Africa Operations, remarked that this move aligns with Equinor’s strategy to optimize its international oil and gas portfolio. The sale to Chappal Energies, a committed Nigerian-owned energy company, is expected to bring continued development and economic contributions to Nigeria.

Chappal Energies Acquires Equinor’s Nigerian Business, Including Agbami Oil Field Stake. Photo courtesy of Equinor ASA.

Chappal Energies’ Vision for the Future

Ufoma Immanuel, Managing Director of Chappal Energies, expressed enthusiasm about taking over from Equinor. Chappal Energies plans to focus on value creation, environmental stewardship, and community engagement, aiming to foster sustainable growth and contribute to Nigeria’s economic prosperity.

Closing Conditions and Future Expectations

The completion of this transaction is contingent on satisfying certain conditions, including regulatory and contractual approvals. Chappal Energies’ acquisition of Equinor’s Nigerian business marks a significant shift in the oil and gas sector landscape in Nigeria.