Chappal Energies finalizes $1.2 billion deal to accumulate Equinor Nigeria, sealing an exit 

Chappal Energies has efficiently accomplished the acquisition of Equinor Nigeria Power Firm (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 within the OML 128 oil and gasoline lease, to Chappal Energies.

One yr later, Mauritius-registered Chappal Energies lastly accomplished the acquisition of Equinor Nigeria Power Firm (ENEC) on December 6, 2025.

The entire worth of the deal is estimated at as much as $1.2 billion, with $710 million as the acquisition value and the rest made up of contingent funds.

Equinor Nigeria acknowledged “As a part of the transaction, all of Equinor’s property in Nigeria have been transferred to Chappal Energies. Native staff will stay with the newly transferred firm underneath its new possession, marking an entire exit of Equinor from Nigeria.’’

What to know

• The acquisition grants Chappal Energies management over Equinor Nigeria Power Firm (ENEC), which holds a 53.85% stake within the OML 128 oil and gasoline lease. This features a 20.2% curiosity within the Chevron-operated Agbami oil subject and the operatorship of OML 129.
• Regardless of dealing with a number of months of delay, Nigerian regulators formally accredited the transaction in November 2024. The deal, executed by way of Mission Odinmim a particular goal car owned by Chappal Energies—was finalized in early December.
• Beneath the phrases of the settlement, Equinor retains no vital liabilities, aside from sure contractual obligations to Chappal Energies as outlined within the transaction paperwork.
• As a part of this acquisition, all of Equinor’s Nigerian property have been transferred to Chappal Energies.
• Rand Service provider Bank, a division of South Africa’s First Rand Bank Restricted, served because the unique monetary adviser to Chappal Energies all through the deal.

Backstory 

On November 29, 2023, after greater than three a long time of operations in Nigeria, Equinor introduced its choice to promote its Nigerian enterprise to Chappal Energies. On the coronary heart of the transaction is Equinor Nigeria’s 54% stake within the OML 128 oil and gasoline lease, a big asset within the firm’s portfolio.

• Equinor’s presence in Nigeria dates again to 1992, and through the years, the corporate has performed a pivotal function within the growth of the Agbami subject, which is Nigeria’s largest deep-water oil subject.
• Since commencing manufacturing in 2008, the Agbami subject has yielded over one billion barrels of oil, producing substantial income for its companions and contributing considerably to Nigeria’s economic system.
• Nevertheless, in January 2023, Equinor signaled its intention to divest its stake within the Agbami oilfield. On the time, the corporate had invested over $3.5 billion for its 20.21% share within the subject.
• Regardless of its early successes, with 10 wells drilled and a 40% discovery charge, sources indicated that manufacturing in Agbami had been declining lately, falling from 36,000 barrels of oil equal per day (boepd) in 2019 to 29,000 boepd in 2020.

Equinor’s choice to exit the Nigerian offshore sector is a part of its broader technique to give attention to extra worthwhile and strategically aligned property.

An organization spokesperson defined that the sale permits Equinor to optimize its worldwide oil and gasoline portfolio, sharpening its give attention to its core areas of operation.