Norwegian energy giant Equinor has announced its decision to end its nearly 31-year business partnership with Nigeria following the completion of the sale of its oil assets.
The company confirmed that the transaction was finalized on December 6, 2024, in a statement released on Monday.
“With this exit, we realise the value and execute on our strategy to focus the international portfolio, and in combination with recent acquisitions and investments in our competitive projects, we seek to sustain long-term production and profitability,” says Philippe Mathieu, executive vice president for international exploration and production in Equinor.
The value of the transaction amounted to up to $1.2 billion, consisting of a purchase price of $710 million and the remainder in contingent payments.
“Nigeria has been an important country in our international portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large. I would like to thank Nigeria and our employees in Nigeria for their great work and dedication over the years and wish our people well in the transition of their professional journey,” Mathieu continues.
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The divestment of assets and the exit from operations in Nigeria were initially announced in 2023.
The international oil company stated that the sale of these assets aligns with its strategy to optimize its oil and gas portfolio.
“The exits enable investments to deepen further in countries where Equinor can add the most value and build a more focused and robust international portfolio,” he added.
The assets have produced an average of 18,700 barrels of oil per day during the first three quarters of 2024.
The company noted that the completion of these transactions will positively impact cash flow for the fourth quarter of 2024.
Under the agreement, Chappal Energies will acquire a 53.85% stake in Oil Mining Lease (OML) 128, which includes a unitized 20.21% interest in the highly productive Agbami oil field 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, establishing it as a key asset in Nigeria’s offshore sector.
In addition to the acquisition, Chappal Energies will take over operatorship of OML 129, an asset with significant growth potential.
OML 129 encompasses the Nnwa, Bilah, and Sehki discoveries, with Nnwa being part of the larger Nnwa-Doro gas field. Despite its large reserves and strategic significance to Nigeria’s energy goals, the Nnwa-Doro gas field has been stranded for over two decades.
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