Chappal Energies has finalized the acquisition of Equinor Nigeria Energy Company (ENEC), marking a significant reshaping of Nigeria’s oil and gas industry.
The deal, announced in 2023, faced delays but reached completion on December 6, 2025.
The acquisition, valued at approximately $1.2 billion, includes a $710 million purchase price and contingent payments making up the remainder. The transaction underscores Chappal Energies’ ambitions in the Nigerian energy sector and Equinor ASA’s exit from a market where it has operated for more than three decades.
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Details of the Deal
Equinor Nigeria confirmed on November 29, 2023, that ENEC, holding a 54% stake in the OML 128 oil and gas lease, was sold to Chappal Energies. Regulators approved the transaction in November 2024, paving the way for the completion of the deal under Project Odinmim, a special-purpose vehicle owned by Chappal Energies.
The acquisition grants Chappal Energies a controlling interest in ENEC, including a 20.2% stake in the Chevron-operated Agbami oil field and operatorship of OML 129. The Agbami field, one of Nigeria’s most prolific deep-water oil fields, has produced over a billion barrels of oil since its inception in 2008.
In a statement, Equinor Nigeria said: “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.”
This acquisition is a pivotal moment for Chappal Energies, which now assumes responsibility for Equinor’s former assets and operations in Nigeria. The deal positions the Mauritius-registered company as a significant player in Nigeria’s offshore oil sector, leveraging key assets to strengthen its foothold in the market.
Rand Merchant Bank, a division of South Africa’s First Rand Bank Limited, served as the exclusive financial adviser to Chappal Energies, highlighting the strategic and financial planning behind the acquisition.
Equinor, for its part, sees the sale as part of a broader strategy to optimize its global portfolio. A spokesperson for the Norwegian energy giant noted: “This transaction allows Equinor to sharpen its focus on core areas of operation and streamline its international oil and gas portfolio.”
The Backstory of Equinor’s Journey in Nigeria
Equinor’s involvement in Nigeria dates back to 1992, and the company has played a transformative role in the country’s energy sector. Its development of the Agbami field, Nigeria’s largest deep-water oil field, has been a cornerstone of its operations.
Despite its early successes, Equinor signaled its intention to divest from Nigerian offshore operations in January 2023. At the time, the company had invested over $3.5 billion in its 20.21% stake in the Agbami oilfield.
Production from the Agbami field, once a key contributor to Nigeria’s oil output, has declined in recent years. Output fell from 36,000 barrels of oil equivalent per day (boepd) in 2019 to 29,000 boepd in 2020. These challenges, coupled with Equinor’s broader strategy to focus on more profitable assets, led to its decision to exit the Nigerian market.
With Equinor’s complete exit, Chappal Energies inherits a complex but potentially lucrative portfolio of assets. This acquisition not only reshapes Nigeria’s energy sector but also reflects shifting priorities within the global oil and gas industry.