Equinor Finalises $2 Billion Asset Sale to Chappal Energies, Exits Nigeria After 30 Years

Norwegian oil and gas company Equinor has finalised the sale of its Nigerian assets, marking the end of a 30-year presence in the country. The divestment, valued at up to $1.2 billion, involves the sale of Equinor Nigeria Energy Company (ENEC) to Mauritius-based Chappal Energies. The transaction was first announced in November 2023 and completed on December 6, 2024. Nigerian regulators had approved the deal in November 2024.

The deal includes Equinor’s 54 per cent stake in the OML 128 oil and gas lease. This lease holds a 20.21 per cent interest in the Chevron-operated Agbami oil field. Chappal Energies also takes over the operatorship of OML 129. The purchase price of $710 million is supplemented by contingent payments tied to market conditions.

Equinor said all its Nigerian assets, along with local employees, have been transferred to Chappal Energies. This marks a full exit from Nigeria for the Norwegian company. The company said it is refocusing on regions where it can achieve better results and streamline its operations.

Equinor entered Nigeria in 1992 and has since been involved in the Agbami oil field. Agbami, Nigeria’s largest deep-water field, has produced over one billion barrels of oil since production began in 2008. However, production has declined in recent years. It dropped from 36,000 barrels of oil equivalent per day (boepd) in 2019 to 29,000 boepd in 2020. This decline, alongside, the nation’s difficult economic environment, reportedly influenced Equinor’s decision to sell its Nigerian assets.

In addition to the Nigerian divestment, Equinor has also sold its Azerbaijani assets. These include stakes in the Azeri Chirag Gunashli field, the Baku-Tbilisi-Ceyhan pipeline, and the Karabagh project. The Azerbaijani assets were sold for $745 million to Azerbaijan’s SOCAR and India’s ONGC.

Chappal Energies has acquired Nigeria’s ENEC through its special-purpose vehicle, Project Odinmim. This acquisition gives Chappal a majority stake in OML 128 and a key role in the Agbami oil field. The deal faced delays but was eventually completed with support from Rand Merchant Bank, which acted as Chappal Energies’ financial adviser.

Equinor retains no major liabilities from the sale, aside from limited obligations to Chappal Energies. The company plans to reinvest in other countries, including Brazil, Britain, and the United States.

Equinor’s move mirrors a trend among International Oil Companies (IOCs) withdrawing from Nigeria’s onshore sector after years of operation. Earlier in June, TotalEnergies entered into an agreement to sell its onshore oil assets in Nigeria to indigenous firm Chappal Energies for $860 million. The transaction is expected to be completed by December 31, 2024. The company had said it will be pivoting away from Nigeria’s challenging onshore oil sector towards more secure offshore ventures.

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