Equinor Nigeria confirmed the sale of ENEC, holding a 54% interest in OML 128 oil and gas lease, to Chappal Energies on November 29, 2023.
The Mauritius-registered Chappal Energies completed the acquisition of Equinor Nigeria Energy Company (ENEC) on December 6, 2024.
The total transaction value is estimated to reach up to $1.2 billion, with $710 million designated as the purchase price and the remainder consisting of contingent payments.
Equinor Nigeria stated, "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 provides Chappal Energies with control over Equinor Nigeria Energy Company (ENEC), which holds a 53.85% stake in the OML 128 oil and gas lease. This includes a 20.2% interest in the Chevron-operated Agbami oil field and the operatorship of OML 129.
Despite experiencing several months of delays, Nigerian regulators granted official approval for the transaction in November 2024. The deal, executed through Project Odinmim, a special purpose vehicle owned by Chappal Energies, was finalized in early December.
Under the agreement's terms, Equinor retains no significant liabilities, aside from certain contractual obligations to Chappal Energies as specified in the transaction documents. All of Equinor’s Nigerian assets have been transferred to Chappal Energies as part of this acquisition.
Rand Merchant Bank, a division of South Africa’s First Rand Bank Limited, acted as the exclusive financial adviser to Chappal Energies throughout the transaction.