Equinor agrees to sell company (ENEC) stake to Chappal Energies

The deal includes Equinor's 53.85% ownership in the oil and gas lease OML 128, which encompasses a unitized 20.21% stake in the Agbami oil field, operated by Chevron

Abuja, Nigeria: In a strategic move to optimize its international oil and gas portfolio, Equinor has entered into an agreement to sell its Equinor Nigeria Energy Company (ENEC) to Chappal Energies.

The deal includes Equinor’s 53.85% ownership in the oil and gas lease OML 128, which encompasses a unitized 20.21% stake in the Agbami oil field, operated by Chevron.

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Equinor, a key player in Nigeria since 1992, has been instrumental in the development of Nigeria’s largest deep-water field, Agbami.

The field, operational since 2008, has contributed significantly to Nigeria’s oil production, yielding over 1 billion barrels of oil and creating value for partners and the local society.

Nina Koch, Equinor’s Senior Vice President for Africa Operations, explained the rationale behind the transaction, stating, “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.”

Koch also expressed confidence in Chappal Energies, describing them as a committed Nigerian-owned energy company poised to develop the assets further, contributing to Nigeria’s economic growth.

Chappal Energies, a Nigerian-owned energy company, is set to take over the majority stake in ENEC.

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Ufoma Immanuel, Managing Director of Chappal Energies, expressed excitement about the acquisition, stating, “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.”

Immanuel emphasized Chappal Energies’ commitment to sustainable growth, social impact, and contributing to Nigeria’s economic prosperity.

The Managing Director outlined the company’s focus on making a lasting impact, with social and development impact serving as crucial metrics for success.

Immanuel’s assurance reflects the company’s dedication to aligning its operations with environmental responsibility and community development.

As the agreement moves forward, the closing of the transaction remains subject to various conditions, including regulatory and contractual approvals.

The successful completion of the deal will mark a significant transition in ownership and operational control of OML 128, with Chappal Energies set to play a pivotal role in shaping the future trajectory of these assets.

The Equinor-Chappal Energies deal underscores the dynamic nature of the energy sector, where strategic decisions are made to enhance portfolio optimization and align with evolving business objectives.

The outcome of this transaction is poised to impact not only the companies involved but also the broader energy landscape in Nigeria, with implications for local communities, stakeholders, and the nation’s economic development.

 

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members

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