Chappal Energies completes acquisition of Equinor’s Nigeria business

Chappal Energies has announced the closing of the acquisition of Equinor Nigeria Energy Company (ENEC), which holds a 53.85 percent ownership in oil and gas lease OML 128.

Recall that Equinor and Chappal Energies entered into an agreement on 29th November 2023 with regards to the Acquisition for an undisclosed consideration and Rand Merchant Bank (RMB), a division of FirstRand Bank Limited, acted as the sole financial advisor to Chappal Energies on the acquisition.

In a statement, it said the acquisition includes the 20.21% stake in the Agbami oil field, operated by Chevron.

It said since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil, creating value for the Nigerian society and the various stakeholders.

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“Chappal Energies will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki). The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria. This field development opportunity will unlock a world class asset that has been stranded for over 20 years and is poised to bring substantial benefits to the many stakeholders, including shareholders, employees, local communities and the national economy while supporting the fulfilment of the Nation’s objectives as articulated in the Nigerian decade of gas objective.”

The Managing Director of Chappal Energies, Ufoma Immanuel, said the milestone achieved as an indigenous company acquiring a stake in an offshore production sharing contract (PSC) through a competitive process aligns with its objectives of securing existing production alongside development opportunities.

“We extend our heartfelt appreciation to President Bola Ahmed Tinubu, the Honourable Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, the Honourable Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, Mallam Mele Kyari the GCEO of NNPCL our concessionaire and our partners in the PSC.”

He said the acquisition not only brings immediate production and cashflow benefits, but also reinforces its vision of building an upstream company capable of driving transformative change in Africa’s energy sector.