Chappal Energies Completes Landmark $1.2 Billion Acquisition of Equinor’s Nigerian Assets

LAGOS / ABUJA — Chappal Energies has officially finalized its acquisition of Equinor Nigeria Energy Company (ENEC) for up to $1.2 billion, completing one of the largest offshore upstream transactions in West Africa and concluding over 30 years of operations in Nigeria for Norway’s state-backed energy major Equinor ASA.

The transaction, executed through Chappal’s special-purpose vehicle Project Odinmim Investments Limited following approval from the Nigerian government and upstream regulators, grants the independent operator a transformative footprint in Nigeria's prolific deepwater basin.

Under the financial structure of the deal, Chappal Energies paid an upfront purchase price of $710 million at closing on December 6, 2024, with additional contingent payments structured to bring the total transaction value to $1.2 billion. The acquired portfolio includes Equinor’s 53.85% operating interest in Oil Mining Lease (OML) 128 and its unitized 20.21% stake in the offshore Agbami field, operated by Chevron Nigeria Limited, alongside operatorship of OML 129.

“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,” said Ufoma Immanuel, Managing Director of Chappal Energies. 

Located roughly 110 kilometers off the Nigerian coast in water depths exceeding 4,800 feet, the Agbami field has produced over one billion barrels of high-grade light sweet crude since first oil in 2008. The asset provides Chappal immediate production and stable cash flow. Rand Merchant Bank (RMB) served as the financial adviser to Chappal Energies on the transaction.

The transaction represents a total country exit for Equinor, which first established its presence in Nigeria in 1992. The divestment aligns with Equinor's global strategy to optimize its international upstream portfolio and reallocate capital toward core deepwater operational hubs and low-carbon initiatives.

“Nigeria has been an important part of Equinor's international portfolio over the past 30 years. This transaction realizes value and is in line with Equinor's strategy to optimize its international oil and gas portfolio and focus on core areas,” stated Nina Koch, Equinor’s Senior Vice President for Africa Operations.

All local Equinor employees in Nigeria have transitioned to the newly structured company under Chappal’s ownership, ensuring operational continuity across the offshore facilities.

This closing joins a broader wave of upstream portfolio realignment across Nigeria's energy sector following regulatory reforms under the Petroleum Industry Act (PIA).

Founded in 2020 by Ufoma Immanuel, Chappal Energies continues to execute its strategy of acquiring and revitalizing strategic upstream assets and energy infrastructure across West Africa.

Learn More at: https://www.equinor.com/news/20231129-sells-nigerian-business