Equinor Completes $1.2 Billion Sale of Nigerian Oil Assets, Ending 31-Year Partnership
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Norwegian energy company Equinor has officially concluded its nearly 31-year business partnership with Nigeria following the completion of the sale of its oil assets. The transaction, which was finalized on December 6, 2024, marks the end of the company’s long-standing presence in the country.
In a statement issued on Monday, Equinor’s Executive Vice President for International Exploration and Production, Philippe Mathieu, explained that the asset sale was part of the company’s strategy to streamline its international portfolio. “With this exit, we realize the value of our assets and execute our strategy to focus on a more competitive portfolio. Through recent acquisitions and investments in promising projects, we aim to sustain long-term production and profitability,” he said.
The total value of the deal is up to $1.2 billion, which includes a $710 million purchase price and additional contingent payments.
Mathieu acknowledged Nigeria’s significance in Equinor’s international portfolio, stating, “Nigeria has been an important country in our operations for decades. Together with our partners and suppliers, we have created substantial value for Equinor and society. I would like to thank Nigeria and our employees for their dedication over the years, and wish them well as they transition in their professional journeys.”
The sale of Equinor’s assets in Nigeria was first announced in 2023 as part of the company’s broader strategy to optimize its oil and gas portfolio. The divestments are designed to allow Equinor to focus on regions where it can create the most value and build a more concentrated and resilient international portfolio.
The assets in question had an average equity production of 18,700 barrels of oil per day in the first three quarters of 2024. The completion of the sale is expected to have a positive impact on Equinor’s cash flow for the fourth quarter of 2024.
As part of the deal, Chappal Energies has acquired a 53.85 percent stake in Oil Mining Lease (OML) 128, which includes a 20.21 percent interest in the Agbami oil field, one of Nigeria’s largest and most productive deep-water fields. The Agbami field, which began production in 2008, has produced over one billion barrels of oil to date, underscoring its importance to Nigeria’s offshore oil sector.
Additionally, Chappal Energies will assume operatorship of OML 129, an asset with significant potential. This includes the Nnwa, Bilah, and Sehki discoveries, with the Nnwa discovery being part of the larger Nnwa-Doro gas field. Despite its vast reserves, Nnwa-Doro has remained largely untapped for over two decades, making its development a key element in Nigeria’s future energy strategy.
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