Norwegian energy company Equinor has completed the sale of its Nigerian business, including its stake in the Agbami oil field, to Nigerian-owned energy firm Chappal Energies. The deal includes Equinor Nigeria Energy Company (ENEC), holding a 53.85% ownership in oil and gas lease OML 128, which encompasses a 20.21% stake in the Agbami oil field operated by Chevron
Key Points:
- Agreement with Chappal Energies:
- Equinor and Chappal Energies entered into an agreement for the sale of Equinor’s Nigerian business, marking a strategic move for both companies. The transaction includes Equinor’s share in the Agbami oil field.
- Equinor’s Presence in Nigeria:
- Equinor has been present in Nigeria since 1992 and played a significant role in the development of Nigeria’s largest deep-water field, Agbami. The Agbami field, operated by Chevron, has produced over one billion barrels of oil since its inception in 2008.
- Value Realization and Portfolio Optimization:
- The sale aligns with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas. The transaction is viewed as a means to realize value while reshaping Equinor’s global portfolio.
- Chappal Energies’ Commitment:
- Chappal Energies, as the acquiring entity, is described as a committed Nigerian-owned energy company with the ambition to further develop the acquired assets. The company expresses dedication to contributing to the Nigerian economy and fostering sustainable growth.
- Closing of the Transaction:
- The completion of the transaction is contingent on meeting certain conditions, including obtaining regulatory and contractual approvals. The deal’s finalization is subject to satisfying these conditions.
- Chappal Energies’ Focus and Ambition:
- Chappal Energies focuses on unlocking latent value in Nigeria and Africa’s oil and gas resources. The company aims to revitalize aging assets, emphasizing solutions that enhance operational efficiency and secure longevity.
- Equinor’s Portfolio and Carbon Ambitions:
- Equinor is an international energy company with a diversified portfolio, including oil and gas, renewables, and low-carbon solutions. The company is committed to long-term value creation and aims to become a net-zero energy company by 2050.
- Environmental Stewardship and Community Engagement:
- Chappal Energies highlights its commitment to environmental stewardship and community engagement as core principles. The company emphasizes that the social and development impact will be a crucial measurement of its success.
Conclusion: Equinor’s sale of its Nigerian business to Chappal Energies, including the stake in the Agbami oil field, reflects strategic portfolio optimization. Chappal Energies, as the new owner, expresses dedication to sustainable growth, environmental responsibility, and making a positive impact on the Nigerian economy. The completion of the transaction awaits regulatory and contractual approvals.
