Norwegian energy company Equinor has announced the end of its nearly 31-year business partnership with Nigeria following the completion of the sale of its oil assets.
In a statement released on Monday, the company confirmed that the sale was finalized on December 6, 2024.
“With this exit, we realise the value and execute on our strategy to focus the international portfolio, and in combination with recent acquisitions and investments in our competitive projects, we seek to sustain long-term production and profitability,” says Philippe Mathieu, executive vice president for international exploration and production in Equinor.
The value of the transaction amounted to up to $1.2 billion, consisting of a purchase price of $710 million and the remainder in contingent payments.
“Nigeria has been an important country in our international portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large. I would like to thank Nigeria and our employees in Nigeria for their great work and dedication over the years and wish our people well in the transition of their professional journey,” Mathieu continues.
The decision to divest assets and exit operations in Nigeria was initially announced in 2023.
Equinor stated that the sale of its assets aligns with its strategy to optimize its oil and gas portfolio.
“The exits enable investments to deepen further in countries where Equinor can add the most value and build a more focused and robust international portfolio,” he added.
The assets in question have been producing an average of 18,700 barrels of oil per day in the first three quarters of 2024.
The completion of these transactions is expected to positively impact cash flow for the fourth quarter of 2024, according to the company.
The deal grants Chappal Energies a 53.85% ownership stake in Oil Mining Lease (OML) 128, which includes a 20.21% unitized interest in the prolific Agbami oil field operated by Chevron.
The Agbami field, one of Nigeria’s largest deep-water oil fields, began production in 2008 and has since produced over one billion barrels of oil, cementing its status as one of Nigeria’s most significant offshore assets.
In addition to the acquisition, Chappal Energies will take over operatorship of OML 129, an asset with substantial potential.
This block includes the Nnwa, Bilah, and Sehki discoveries, with the Nnwa discovery being part of the larger Nnwa-Doro gas field.
Despite its vast reserves and strategic importance to Nigeria’s energy objectives, Nnwa-Doro has remained stranded for over 20 years.