Norwegian oil firm, Equinor shuts operation in Nigeria, sells stake to indigenous competitor
Norwegian state-owned multinational energy company Equinor inked a deal with Nigerian-owned Chappal Energies, allowing the latter to acquire its business in Africa’s biggest oil producer.
According to a statement released Wednesday, the transaction includes Equinor Nigeria Energy Company’s 20.2 per cent stake in Chevron-operated Agbami, the country’s largest deep-water oilfields.
The deal is subject to fulfilment of conditions such as regulatory and contractual approvals, the statement added.
Equinor holds a 53.9 per cent interest in oil & gas lease OMLs 128 and 129. Six wells have been drilled in both, with two discoveries made.
The Agbami field has produced over one billion barrels of oil since production began in 2008 and, according to the information on Equinor’s website, is the world’s largest floating production, storage, and offloading (FPSO) vessel. It is able to store up to 2.2 million bbl of oil.
If successful, the deal will cut Equinor’s ties with Nigeria, stretching back more than three decades to 1992.
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“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,” said Nina Koch, Equinor senior vice president for Africa Operations.
“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,” she added.
Chappal Energies is registered in Mauritius and says it focuses on investments in deep value and distressed brownfield upstream opportunities in Nigeria’s Niger Delta region.
Ufoma Immanuel, the managing director of Chappal Energies, said “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.”
