Norwegian oil firm, Equinor, to exit Nigeria, sell business to Chappal Energies

Equinor says it has agreed to sell its Nigerian business, including the company’s stake in Agbami oil field, to Chappal Energies, a Nigerian-owned firm.

In a statement on Wednesday, the Norwegian firm said it will sell Equinor Nigeria Energy Company (ENEC) — which holds a 53.85 percent ownership in oil mining lease (OML) 128, including a 20.21 percent stake in the Agbami field, operated by Chevron.

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

“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 the Nigerian society.”

The company said the closing of the transaction is subject to regulatory and contractual approvals. 

Speaking on the transaction, Nina Koch, Equinor senior vice president for African operations, said Nigeria has been an integral 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,” Koch said.

“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.” 

The transaction represents the latest in international oil companies’ (IOCs) sales of Nigerian assets. 

In September 2023, Oando Plc agreed to acquire a 100 percent stake in Eni’s subsidiary — Nigerian Agip Oil Company Limited (NAOC Ltd). 

Seplat Energy Plc, in February 2021, agreed to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.3 billion.

However, both deals are yet to receive ministerial consents and other regulatory approvals. 

In 2016, Chevron Nigeria Limited formally handed over the producing assets in OMLs 53 and 55 to Seplat Petroleum Development Company Plc.