Norwegian energy giant Equinor has officially ended its 31-year business partnership with Nigeria, completing the sale of its oil assets on December 6, 2024. The company announced the divestment as part of its broader strategy to streamline its international portfolio and focus on competitive projects.
“With this exit, we realize value and execute our strategy to focus the international portfolio. In combination with recent acquisitions and investments, we aim to sustain long-term production and profitability,” said Philippe Mathieu, Equinor’s Executive Vice President for International Exploration and Production.
The transaction, valued at up to $1.2 billion, includes a purchase price of $710 million, with the balance in contingent payments.
Chappal Energies Acquires Key Assets
The deal transfers a 53.85% ownership stake in Oil Mining Lease (OML) 128 to Chappal Energies, including a 20.21% unitized interest in the Agbami oil field, one of Nigeria’s most prolific deep-water assets operated by Chevron. The Agbami field, which began production in 2008, has delivered over one billion barrels of oil to date, cementing its status as a cornerstone of Nigeria’s offshore production.
Chappal Energies will also take over operatorship of OML 129, a block with significant untapped potential. This includes the Nnwa-Doro gas field, a vast resource that has remained undeveloped for over two decades.
Strategic Focus for Equinor
Equinor highlighted the move as part of its ongoing effort to optimize its oil and gas portfolio, directing investments toward regions where it can create the most value.
“Nigeria has been an important country in our international portfolio for decades. Together with our partners and suppliers, we have created significant value for Equinor and society. I thank our Nigerian employees for their dedication and wish them well in their transition,” Mathieu said.
Impact on Operations and Cash Flow
Equinor’s assets in Nigeria produced an average of 18,700 barrels of oil per day in the first three quarters of 2024. The company expects the sale to have a positive impact on its cash flow for the fourth quarter of 2024.
The exit marks the conclusion of Equinor’s presence in Nigeria, a move first announced in 2023, as the company focuses on enhancing its competitiveness and profitability in other markets.
