Chappal Finally Completes Take Over of Equinor Assets in Nigeria

The total value of the deal is estimated at up to $1.2 billion, with $710 million as the purchase price and the remainder made up of contingent payments.

Business Post reports that Equinor Nigeria confirmed the sale of ENEC, which holds a 54 per cent stake in the OML 128 oil and gas lease, to Chappal Energies in November 2023.

Now, the Mauritius-registered Chappal Energies has finally completed the acquisition of Equinor Nigeria Energy Company (ENEC).

The deal was completed on December 6, 2024.

Equinor Nigeria stated “As part of the transaction, all of Equinor’s assets in Nigeria have been transferred to Chappal Energies. Local employees will remain with the newly transferred company under its new ownership, marking a complete exit of Equinor from Nigeria.’’

The acquisition grants Chappal Energies control over Equinor, which holds a 53.85 per cent stake in the OML 128 oil and gas lease.

This includes a 20.2 per cent interest in the Chevron-operated Agbami oil field and the operatorship of OML 129.

Despite facing several months of delay, Nigerian regulators officially approved the transaction in November 2024. The deal, executed through Project Odinmim a special-purpose vehicle owned by Chappal Energies—was finalized in early December.

Under the terms of the agreement, Equinor retains no significant liabilities, except for certain contractual obligations to Chappal Energies as outlined in the transaction documents.

Equinor’s presence in Nigeria dates back to 1992, and over the last 30 years, the company has played a pivotal role in the development of the Agbami field, which is Nigeria’s largest deep-water oil field.

Since commencing production in 2008, the Agbami field has yielded over one billion barrels of oil, generating substantial profits for its partners and contributing significantly to Nigeria’s economy.

However, in January 2023, Equinor signalled its intention to divest its stake in the Agbami oilfield. At the time, the company had invested over $3.5 billion for its 20.21 per cent share in the field.

Despite its early successes, with 10 wells drilled and a 40 per cent discovery rate, production in Agbami has been declining in recent years, falling from 36,000 barrels of oil equivalent per day (boepd) in 2019 to 29,000 boepd in 2020.

Equinor’s decision to exit the Nigerian offshore sector is part of its broader strategy to focus on more profitable and strategically aligned assets.

The sale allows Equinor to optimise its international oil and gas portfolio, sharpening its focus on its core areas of operation.