After completing the sale of its assets to simplify its global portfolio, Norwegian energy major, Equinor has ended its 31-year involvement in Nigeria’s oil and gas industry.
The $1.2 billion deal, which includes $710 million in upfront payments and other considerations, was finalised on December 6, 2024, the company said on Monday. A 53.85% ownership in Oil Mining Lease (OML) 128 is part of Equinor’s disposal. This includes a 20.21% holding in the Agbami oil field, one of Nigeria’s biggest and most productive deep-water assets, which has produced more than a billion barrels of oil since it began in 2008.
According to the Executive Vice President for International Exploration and production Philippe Mathieu of Equinor: “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.”
OML 129, which contains unexplored discoveries like the Nnwa-Doro gas field—a resource that has been stranded for more than 20 years despite its potential to support Nigeria’s energy supply—will now be operated by the buyer, Chappal Energies, BrandSpur Nigeria news today reports.
The EVP went on to say: “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.
“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,” he added.
The decision by Equinor, which was first made public in 2023, is the most recent in a string of global oil firms to abandon operations in Nigeria due to difficulties and the drive towards renewable energy. The company, which in early 2024 averaged 18,700 barrels per day from these assets, emphasised that the sale is in line with its overarching objective of maintaining long-term profitability and constructing a strong portfolio.
Continuing, Mathieu had this to say: “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.”
As Equinor turns its attention to high-value markets around the world, the deal is anticipated to increase the company’s cash flow in the fourth quarter, indicating a major financial turnaround.
The acquisition of Chappal Energies may revitalise OML 129 and the dormant Nnwa-Doro field, providing opportunities for expansion in Nigeria’s energy sector. The transaction, however, reflects a larger pattern of energy giants evaluating their regional presence in the face of changing market conditions.
