Equinor sells 31-year-old Nigerian business to Chappal Energies

…Awaits regulatory approval

Equinor has sold its Nigerian business, including its share in the Agbami oil field, to Nigerian-owned Chappal Energies.

According to findings by BusinessDay, Equinor and Chappal Energies have entered into an agreement for the sale of Equinor Nigeria Energy Company (ENEC), which holds a 53.85percent ownership in oil and gas lease OML 128, including the unitised 20.21percent stake in the Agbami oil field, operated by Chevron.

Equinor has been present in Nigeria since 1992 and has played a significant role in developing Nigeria’s largest deep-water field, Agbami. Since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil, creating value for the partners and Nigerian society.

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“Nigeria has been an important part of Equinor’s international portfolio over the past 30 years. This transaction realises value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas. Chappal Energies is a committed Nigerian-owned energy company with the ambition to develop the assets further, contributing to the Nigerian economy for years to come,” Nina Koch, Equinor’s senior vice president for Africa Operations said.

Ufoma Immanuel, managing director of Chappal Energies, comments: ‘We are excited to take over the baton from Equinor after three decades of enduring legacy. Value creation, environmental stewardship, and community engagement are at the heart of everything we do, and our social and development impact will be the most important measurement of our success. We are confident in our ability to make a lasting impact and are committed to fostering sustainable growth and contributing to Nigeria’s economic prosperity now and in the future.’

The closing of the transaction is subject to the satisfaction of certain conditions including all regulatory and contractual approvals.