Chappal Energies acquires Equinor’s Nigerian assets

LAGOS, December 9, 2024 – African energy company Chappal Energies has completed its acquisition of Equinor’s Nigerian assets, the company announced this weekend.

The deal, which was previously agreed to and announced in November 2023, is worth around USD 1.2 billion and consists of a USD 710-million cash payment and contingent payments. The Nigerian regulators approved the transaction in November 2024.

The acquisition notably gives Chappal Energies 53.85% ownership of Oil Mining Licence (OML) 128, which includes a 20.21% stake in Agbami oilfield operated by Chevron. The company will also operate OML 129, a prospective mining licence.

Ufoma Immanuel, managing director of Chappal Energies, said that acquisition “brings immediate production and cashflow benefits.”

The sale is representative of a larger trend seen in Nigeria, where IOCs are divesting their mostly onshore and shallow-water assets in favour of deepwater opportunities, which reduce their exposure to issues such as oil theft. Unlike many divestments, the Agbami field is a major deepwater asset.

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