Norwegian energy company Equinor has terminated its nearly 31-year business relationship with Nigeria following the completion of the sale of its oil assets to Chappal Energies.
A company statement released on Monday confirmed that the asset sale was finalised on December 6, 2024.
“With this departure, we realise the value and implement our strategy to streamline the international portfolio; alongside recent acquisitions and investments in our competitive projects, we aim to maintain long-term production and profitability,” said Philippe Mathieu, Executive Vice President for International Exploration and Production at Equinor.
The deal’s total value reached up to $1.2 billion, including a purchase price of $710 million and additional contingent payments.
“Nigeria has played a vital role in our international portfolio for many years. In collaboration with our partners and suppliers, we have generated significant value for both Equinor and the broader society. I want to express gratitude to Nigeria and our employees there for their hard work and commitment over the years, and I wish them all the best as they transition to the next stage of their careers,” Mathieu added.
The company’s plans to divest its assets and exit operations in Nigeria were initially announced in 2023, indicating that the asset sale aligns with its strategy to optimize its oil and gas portfolio.
“Exiting these operations will allow for further investments in countries where Equinor can provide the most value and develop a more focused and resilient international portfolio,” he noted.
On average, the total equity production from these assets was 18,700 barrels of oil per day during the first three quarters of 2024. According to the company, completing these transactions will positively influence cash flow for the fourth quarter of 2024.
The agreement gives Chappal Energies a 53.85 per cent ownership interest in Oil Mining Lease (OML) 128, which includes a unitised 20.21 per cent stake in the prominent Agbami Oil Field managed by Chevron.
The Agbami field ranks as one of Nigeria’s largest deep-water oil fields, commencing production in 2008 and having produced over one billion barrels of oil to date, underscoring its significance as one of Nigeria’s most productive offshore assets.
In conjunction with this acquisition, Chappal Energies will take over the operatorship of OML 129, an asset with significant potential.
