Norwegian energy company Equinor has concluded the sale of its Nigerian business, including its 53.85% share in oil and gas lease OML 128. This share encompasses a unitised 20.21% stake in the Agbami oil field, operated by Chevron.
The acquiring entity is Nigerian-owned Chappal Energies. The sale signifies the end of Equinor’s three-decade presence in Nigeria, where it played a significant role in developing the country’s oil and gas sector, notably in the prolific Agbami field that has yielded over 1 billion barrels of oil since 2008.
Nina Koch, Equinor senior vice president for Africa Operations, emphasized the significance of Nigeria in Equinor’s international portfolio over the past 30 years. The transaction aligns with Equinor’s strategic objective to optimize its global oil and gas portfolio, concentrating on core areas of operation.
Chappal Energies, the acquiring company, expressed excitement about taking over the assets and committed to further developing them to contribute to the Nigerian economy. Ufoma Immanuel, Managing Director of Chappal Energies, highlighted their dedication to value creation, environmental stewardship, and community engagement, considering these as crucial indicators of success.
The completion of the transaction is contingent on obtaining regulatory and contractual approvals. This marks the final step in Equinor’s exit from its Nigerian operations, emphasizing the shift in focus and strategy for both companies involved in this significant energy sector transition.