MCB commits $120m in Chappal Energies’ acquisition of Equinor

Mauritius Commercial Bank (MCB) contributed $120 million of $360 million “senior secured bridge facility” to partly finance the acquisition of all Equinor’s offshore infrastructure by Chappal Energies, according to a statement by the bank.

The successful acquisition of Equinor Nigeria Energy Company (ENEC), marks the conclusion of Equinor’s 32-year operations in Nigeria.

This deal grants Chappal Energies a 53.85 percent ownership stake in Oil Mining Lease (OML) 128, including a unitised 20.21 percent interest in the prolific Agbami oil field operated by Chevron.

As international oil companies gradually shift their focus to offshore and integrated gas operations in Nigeria, this transition creates a unique opportunity for indigenous companies such as Chappal Energies to take on a leading role in the Nigerian oil and gas industry and become key contributors to the country’s vision of achieving universal energy access by 2030.

Through this landmark transaction, MCB confirmed its position as one of the leading financial institutions active in the energy space on the African continent and the strength of the Mauritius International Financial Centre (MIFC).

The bank aims to leverage its Energy and Commodities expertise and established track record to support its international clients in their strategic projects on the continent.

Read also: Aradel Holdings acquire 5.14% equity stake in Chappal Energies Mauritius

“MCB is proud to support Chappal Energies in this strategic and transformational acquisition for the company. This transaction aligns with our strategy to support the energy requirements of African economies and their transition endeavours,” said Thierry Hebraud, CEO, MCB Ltd.

Commenting on the milestone transaction, Ufoma Immanuel, managing director of Chappal Energies said MCB remains a crucial partner for the company, stating that the “upstream team is fully integrated into our strategic thinking from the inception of ideas and collaborates effectively across the value chain, from transaction structuring to deal execution”.

In his remark, Youri Harel, executive director, Structured Debt and Power & Infrastructure, Specialised Finance, MCB Ltd said the bank is “thrilled” to support Chappal Energies in this pivotal acquisition, which represents a major advancement for the company.

“The extent of our involvement in this deal underscores the growth of our internal capabilities throughout the years and our increasing role in high-level impact transactions,” Harel said

Over the past decade, MCB has built a team of specialised senior bankers with a track record of several oil & gas transactions closed in Nigeria. This majority buyout will enable the founders of Chappal to unlock new growth levers and keep expanding throughout Africa.