Equinor, an energy company based in Norway has sold its Nigerian business to Nigerian-owned Chappal Energies. The transaction includes Equinor’s share in the Agbami oil field.
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In a statement on its website, Equinor stated that it has 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.
Equinor entered the Nigerian Oil and Gas sector in 1992, and claims to have played a significant role in developing Nigeria’s largest deep-water field, Agbami. The company stated that since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil.
Nairametrics however reported that production in the Agbami field has been declining rapidly in recent years, down from 36,000 barrels of oil equivalent per day (boepd) in 2019 and 29,000 boepd in 2020.
Chevron, the Agbami field operator has 67.30% interest in the field while Prime 127 holds the remaining 12.49%. Equinor is reported to have drilled 10 wells with a 40% discovery rate.
“Nigeria has been an important 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.
“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,” says Nina Koch, Equinor senior vice president for Africa Operations.
Ufoma Immanuel, Managing Director of Chappal Energies, comments: ‘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. We are confident in our ability to make a lasting impact and are committed to fostering sustainable growth and contributing to Nigeria’s economic prosperity now and in the future.’
The closing of the transaction is subject to the satisfaction of certain conditions including all regulatory and contractual approvals.
About Equinor
Equinor is an international energy company headquartered in Norway with 22,000 employees in 30 countries. Its portfolio encompasses oil and gas, renewables and low-carbon solutions.
The company was formed in 1972 as Statoil by a decision of the Norwegian parliament. It was owned 100% by the Norwegian State.
It listed on the Oslo and New York stock exchanges in 2001, with a 67% majority stake owned by the Norwegian State.
In 2018, it changed its name to Equinor.
The company operates refineries, process plants and terminals for converting crude oil into petrol, diesel and fuel oil. It also delivers natural gas to European and global markets.
Equinor also supply electricity from offshore wind to approximately 1 million households in Europe. It is the operator of the Sheringham Shoal, Dudgeon and Hywind Scotland offshore wind farms.
The company is also a partner in solar energy plants in Brazil and Argentina.
About Chappal Energies
Chappal Energies Mauritius Limited on its website stated that it focuses on investments in deep value and distressed brownfield Upstream opportunities in the Niger Delta region of Nigeria.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
