Equinor to Sell Nigerian Business and Chevron Stake to Chappal Energies
Posted 30/11/2023 14:38
Norwegian state-owned energy company Equinor is in the process of divesting its Nigerian business through an agreement with Chappal Energies, a Nigerian firm focused on revitalizing aging oil and gas assets. The deal includes the sale of Equinor Nigeria Energy Company (ENEC), which holds a 53.85% ownership stake in oil and gas lease OML 128. This includes a unitized 20.21% interest in the Agbami oil field, operated by Chevron.
Chappal Energies aims to unlock latent value in Nigeria and Africa's oil and gas resources by rejuvenating aging assets for long-term sustainability. Equinor's exit from Nigeria aligns with its strategy to optimize its international oil and gas portfolio and concentrate on core areas.
Nina Koch, Equinor Senior Vice President for Africa Operations, highlighted Nigeria's significance in Equinor's international portfolio over the past three decades. She noted that the transaction realizes value for Equinor and expressed confidence in Chappal Energies as a committed Nigerian-owned energy company with ambitions to further develop the assets and contribute to Nigeria's economy.
The closing of the transaction is contingent on meeting specific conditions, including regulatory and contractual approvals. Equinor has been present in Nigeria since 1992 and played a significant role in developing Agbami, Nigeria's largest deepwater field. The Agbami field, operated by Chevron, has produced over 1 billion barrels of oil since its commencement in 2008.
Ufoma Immanuel, Managing Director of Chappal Energies, expressed excitement about taking over from Equinor after three decades and emphasized the company's commitment to value creation, environmental stewardship, and community engagement. Chappal Energies aims to make a lasting impact, foster sustainable growth, and contribute to Nigeria's economic prosperity.
Equinor's decision to divest its Nigerian business follows its busy year, marked by project developments and strategic initiatives worldwide. The company recently submitted declarations of commerciality and plans of development for two natural gas fields in Brazil's Campos Basin. Additionally, Equinor engaged Saipem for offshore transport and installation activities related to a subsea gas export line and associated equipment in Brazil's Campos Basin.