Norwegian energy giant Equinor has officially ended its remarkable 31-year partnership with Nigeria, marking a significant shift in the global oil and gas landscape. This decision comes after the completion of the sale of its Nigerian assets, announced on December 6, 2024, and signals a strategic pivot for the company towards a more streamlined and geographically focused portfolio.
Equinor’s exit from Nigeria involved a transaction valued at up to $1.2 billion, including an upfront purchase price of $710 million and additional contingent payments. This move aligns with the company’s strategy of optimizing its international oil and gas portfolio to focus on markets where it can deliver maximum value.
“With this exit, we realize the value and execute on our strategy to focus the international portfolio,” said Philippe Mathieu, Equinor’s executive vice president for international exploration and production. “We aim to sustain long-term production and profitability while deepening our investments in competitive projects.”
Since entering the Nigerian market in the early 1990s, Equinor has played a pivotal role in developing some of the country’s most productive offshore assets. The Agbami oil field, operated by Chevron, is one of the standout successes. Having produced over one billion barrels of oil since operations began in 2008, the Agbami field has been a cornerstone of Nigeria’s deep-water oil production.
Over the years, Equinor’s operations in Nigeria delivered significant value, producing an average of 18,700 barrels of oil per day in the first three quarters of 2024. The company also contributed to local economic development, supported employment, and facilitated knowledge transfer.
Mathieu reflected on this legacy, thanking the company’s employees and partners in Nigeria:
“Nigeria has been an important country in our international portfolio for decades. Together, we have created significant value for Equinor and society at large.”
The divested assets have been acquired by Chappal Energies, a rising player in the African energy sector. The deal grants Chappal Energies a 53.85% stake in Oil Mining Lease (OML) 128, which includes a 20.21% interest in the Agbami oil field. Additionally, Chappal Energies will assume operatorship of OML 129, an asset with vast untapped potential.
OML 129 boasts significant discoveries, including the Nnwa-Doro gas field, which has remained undeveloped for over 20 years despite its strategic importance to Nigeria’s energy goals. The field’s resources present an opportunity to bolster Nigeria’s gas production and support its long-term energy aspirations.
Equinor’s departure highlights broader trends in the global energy sector. International oil companies are increasingly prioritizing markets where they can achieve operational efficiency and maximize returns. For Equinor, this means focusing on core markets and emerging technologies while moving away from regions with higher operational complexities.
The impact of this decision on Nigeria’s oil and gas industry is significant. While Chappal Energies’ acquisition signals continued investment in the sector, the transition underscores the need for Nigeria to diversify its economy and attract new players to sustain energy production and innovation.
Equinor’s strategic realignment reflects the evolving priorities of the global energy market, where companies are balancing profitability with sustainability and innovation. For Nigeria, this transition offers an opportunity to redefine its energy landscape by capitalizing on the new investments and partnerships brought in by Chappal Energies.
The story of Equinor’s exit is a reminder of the dynamic and ever-changing nature of the oil and gas industry. As Nigeria and the global energy market move forward, this chapter sets the stage for new challenges, opportunities, and milestones in the pursuit of energy excellence.
