Chappal Energies Concludes 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 per cent ownership in oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.

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

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 objectives.

Equinor and Chappal Energies entered into an agreement on 29th November 2023 with regards to the Acquisition for an undisclosed consideration.

Managing director of Chappal Energies states that Ufoma Immanuel, “We are proud to announce this milestone achievement as an indigenous company acquiring a stake in an offshore production sharing contract (PSC) through a competitive process. This acquisition aligns with our objectives of securing existing production alongside development opportunities.

“We extend our heartfelt appreciation to President Bola Ahmed Tinubu, the minister of state, Petroleum Resources (Oil), Heineken Lokpobiri, the minister of state, Petroleum Resources (Gas), Ekperikpe Ekpo, Mele Kyari the GCEO of NNPC our concessionaire and our partners in the PSC.

“We also applaud the efforts of the regulatory authorities who have guided us through the approval process, specifically the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) team led by Gbenga Komolafe the CCE. We realise that government and regulatory support play a pivotal role in fostering impactful investments and enabling indigenous companies to thrive in Nigeria’s energy sector.”

This acquisition not only brings immediate production and cashflow benefits but also reinforces the company’s vision of building an upstream company capable of driving transformative change in Africa’s energy sector. “We remain dedicated to contributing to Nigeria’s economic prosperity and the development of its energy landscape through responsible and efficient operations.” the firm said.