Equinor sells assets, exits Nigeria after 31 years

Norwegian energy company Equinor has concluded its 31-year presence in Nigeria’s oil and gas sector after finalising the sale of its assets to streamline its international portfolio.

The company announced Monday that the $1.2 billion deal, including $710 million in upfront payments and contingent considerations, was completed on Dec. 6, 2024.

Equinor’s divestment includes a 53.85% stake in Oil Mining Lease (OML) 128, which encompasses a 20.21% share in the Agbami oil field—one of Nigeria’s largest and most productive deep-water assets, having yielded over a billion barrels of oil since its inception in 2008.

“With this exit, we realise the value and execute on our strategy to focus the international portfolio, and in combination with recent acquisitions and investments in our competitive projects, we seek to sustain long-term production and profitability,” said Philippe Mathieu, Equinor’s executive vice president for international exploration and production.

The buyer, Chappal Energies, will now operate OML 129, an asset that includes untapped discoveries such as the Nnwa-Doro gas field, a resource stranded for over two decades despite its potential to bolster Nigeria’s energy supply.

“Nigeria has been an important country in our international portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large,” Mathieu added.

“I would like to thank Nigeria and our employees in Nigeria for their great work and dedication over the years and wish our people well in the transition of their professional journey.”

Equinor’s decision, first announced in 2023, marks the latest in a series of international oil companies shifting focus from Nigerian operations amid challenges and the push toward renewable energy.

The company, which averaged 18,700 barrels per day from these assets in early 2024, highlighted that the sale aligns with its broader goal of sustaining long-term profitability and building a robust portfolio.

“The exits enable investments to deepen further in countries where Equinor can add the most value and build a more focused and robust international portfolio,” Mathieu said.

The transaction is expected to boost Equinor’s cash flow in the fourth quarter, signaling a significant financial turnaround as the company shifts focus to high-value markets globally.

Chappal Energies’ acquisition could breathe new life into OML 129 and the dormant Nnwa-Doro field, offering potential growth for Nigeria’s energy industry.

However, the sale shows a broader trend of energy majors assessing their footprint in the region amidst shifting market dynamics.