Norwegian oil giant Equinor completes exit from Nigeria

Equinor ASA, Norway’s state-controlled energy company, has finalized the sale of its Nigerian assets, officially ending its over 30-year presence in the country.

The divestment, which includes Equinor’s 20.21% stake in the Agbami oil field, was completed with the sale to Chappal Energies Mauritius Ltd.

Transaction Details

The deal involves a $710 million purchase price, with potential contingent payments. Equinor confirmed it retains no major liabilities, aside from specific contractual obligations to the buyer as outlined in the agreement.

The company first announced its intention to sell the assets in late 2022. Equinor highlighted its contributions to Nigeria’s energy sector, particularly its pivotal role in developing Agbami, the country’s largest deepwater oil field. Since production began in 2008, Agbami has yielded over one billion barrels of oil.

Located in the Niger Delta, Agbami was the world’s largest oil discovery of 1998 and holds an estimated 900 million barrels of recoverable reserves, according to Chevron. The field spans 45,000 acres at a depth of approximately 4,800 feet and is linked to a floating production, storage, and offloading (FPSO) vessel.

Chevron operates the field with a 67.3% interest, while Prime 127 Nigeria Ltd. holds 12.49%. Equinor’s interests in Agbami extended into Oil Mining Lease (OML) 128, where it held a 53.85% stake as the operator. Agbami also lies partially in OML 127, managed by a joint venture between Chevron (32%), Famfa Oil Ltd. (60%), and Prime 127 (8%).

Equinor also operated OML 129, holding a 53.85% interest. Although exploration in this block led to discoveries like Bilah, Nnwa, and Sehki, these were classified as non-commercial by Wood Mackenzie in a report published October 5, 2023.

“This transaction realizes value and aligns with Equinor’s strategy,” said Nina Koch, senior vice president for African operations.

Learn More

Equinor’s exit comes amidst a wave of divestments by major energy companies in Nigeria, particularly in onshore operations. Companies such as Eni SpA, ExxonMobil, Shell, and TotalEnergies are rethinking their positions in the country, citing operational challenges and shifting global priorities.

Chappal Energies Mauritius Ltd., which acquired Equinor’s assets, has also agreed to purchase TotalEnergies’ 10% stake in the Shell Petroleum Development Company (SPDC) joint venture, a deal announced on July 17, 2024.

Shell, a key operator in the SPDC JV, announced its intention to exit the partnership on January 16, 2024, by selling its subsidiary overseeing the JV. However, the British oil giant has faced regulatory hurdles, delaying the completion of the transaction. As of November 3, Shell remained in talks with Nigerian authorities to secure approval.

SPDC is jointly owned by the Nigerian National Petroleum Company Limited (NNPC) with a 55% majority stake, Shell with 30%, and Eni through its Nigerian Agip Oil Company (NAOC) subsidiary with 5%. While Eni recently sold NAOC, it opted to retain its SPDC stake.