Norwegian energy giant Equinor has announced the end of its nearly 31-year business partnership with Nigeria following the completion of the sale of its oil assets.
The company confirmed in a statement on Monday that the asset sale was finalized on December 6, 2024.
“With this exit, we realize value and execute our strategy to focus our international portfolio. Combined with recent acquisitions and investments in competitive projects, we aim to sustain long-term production and profitability,” said Philippe Mathieu, Equinor’s executive vice president for international exploration and production.
The transaction is valued at up to $1.2 billion, including a purchase price of $710 million, with the remainder in contingent payments.
“Nigeria has been an important part of our international portfolio for decades. Along with our partners and suppliers, we have created significant value for both Equinor and society at large. I would like to thank Nigeria and our employees there for their dedication and excellent work over the years, and I wish them well in their professional transition,” Mathieu added.
Equinor first announced its decision to divest from Nigeria in 2023, aligning with its strategy to optimize its oil and gas portfolio.
“The exits allow us to concentrate our investments in countries where Equinor can add the most value, building a more focused and robust international portfolio,” Mathieu continued.
The assets sold produced an average of 18,700 barrels of oil per day in the first three quarters of 2024. The completion of the transactions is expected to positively impact Equinor’s cash flow for the fourth quarter of 2024.
As part of the deal, Chappal Energies has acquired a 53.85% ownership stake in Oil Mining Lease (OML) 128, including a unitized 20.21% interest in the prolific Agbami oil field, which is operated by Chevron. The Agbami field, one of Nigeria’s largest deep-water oil fields, began production in 2008 and has produced over one billion barrels of oil, cementing its status as one of the country’s most productive offshore assets.
In addition to this acquisition, Chappal Energies will assume operatorship of OML 129, which includes significant discoveries such as the Nnwa, Bilah, and Sehki fields. The Nnwa discovery, part of the larger Nnwa-Doro gas field, has remained stranded for over 20 years despite its vast reserves and strategic importance to Nigeria’s energy objectives.
