Chappal Energies has successfully completed the acquisition of Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA, following the announcement of the transaction in 2023.
On November 29, 2023, Equinor Nigeria confirmed the sale of ENEC, which holds a 54% stake in the OML 128 oil and gas lease, to Chappal Energies.
One year later, Mauritius-registered Chappal Energies finally completed the acquisition of Equinor Nigeria Energy Company (ENEC) on December 6, 2025.
The total value of the deal is estimated at up to $1.2 billion, with $710 million as the purchase price and the remainder made up of contingent payments.
Equinor Nigeria stated “As part of the transaction, all of Equinor’s assets in Nigeria have been transferred to Chappal Energies. Local employees will remain with the newly transferred company under its new ownership, marking a complete exit of Equinor from Nigeria.’’
What to know
- The acquisition grants Chappal Energies control over Equinor Nigeria Energy Company (ENEC), which holds a 53.85% stake in the OML 128 oil and gas lease. This includes a 20.2% interest in the Chevron-operated Agbami oil field and the operatorship of OML 129.
- Despite facing several months of delay, Nigerian regulators officially approved the transaction in November 2024. The deal, executed through Project Odinmim a special purpose vehicle owned by Chappal Energies—was finalized in early December.
- Under the terms of the agreement, Equinor retains no significant liabilities, except for certain contractual obligations to Chappal Energies as outlined in the transaction documents.
- As part of this acquisition, all of Equinor’s Nigerian assets have been transferred to Chappal Energies.
- Rand Merchant Bank, a division of South Africa’s First Rand Bank Limited, served as the exclusive financial adviser to Chappal Energies throughout the deal.
Backstory
On November 29, 2023, after more than three decades of operations in Nigeria, Equinor announced its decision to sell its Nigerian business to Chappal Energies. At the heart of the transaction is Equinor Nigeria’s 54% stake in the OML 128 oil and gas lease, a significant asset in the company’s portfolio.
- Equinor’s presence in Nigeria dates back to 1992, and over the years, the company has played a pivotal role in the development of the Agbami field, which is Nigeria’s largest deep-water oil field.
- Since commencing production in 2008, the Agbami field has yielded over one billion barrels of oil, generating substantial profits for its partners and contributing significantly to Nigeria’s economy.
- However, in January 2023, Equinor signaled its intention to divest its stake in the Agbami oilfield. At the time, the company had invested over $3.5 billion for its 20.21% share in the field.
- Despite its early successes, with 10 wells drilled and a 40% discovery rate, sources indicated that production in Agbami had been declining in recent years, falling from 36,000 barrels of oil equivalent per day (boepd) in 2019 to 29,000 boepd in 2020.
Equinor’s decision to exit the Nigerian offshore sector is part of its broader strategy to focus on more profitable and strategically aligned assets.
A company spokesperson explained that the sale allows Equinor to optimize its international oil and gas portfolio, sharpening its focus on its core areas of operation.
