Table of Contents
Key Points
- Chappal Energies completes $1.2 billion acquisition of Equinor Nigeria, expanding its presence in Nigeria's oil sector.
- The acquisition includes control over OML 128, Agbami field, and OML 129, boosting production capacity.
- The deal highlights African financial institutions' increasing role in major energy transactions.
Chappal Energies, a Mauritius-based energy company led by Nigerian business executive Ufoma Immanuel, has finalized the $1.2 billion acquisition of Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA.
The deal, which was announced in November 2023, includes Equinor’s 53.85 percent stake in the oil mining lease (OML) 128, as well as a 20.2 percent interest in the Chevron-operated Agbami oil field and operatorship of OML 129.
The Nigerian federal government granted approval for the divestment on October 21, 2024, allowing Chappal to gain control of ENEC through Project Odinmim, a special-purpose vehicle. The financial terms of the transaction remain undisclosed.
Regulatory greenlight and strategic gains
Ufoma Immanuel, Managing Director of Chappal Energies, emphasized the acquisition's strategic value, citing increased production capacity and enhanced cash flow as key outcomes. “This acquisition reflects our commitment to unlocking the potential of African oil and gas assets through operational efficiency and infrastructure development,” Immanuel said.
The acquisition reflects a larger trend of global oil majors exiting Nigeria's upstream sector amid ongoing infrastructure challenges and oil theft. Companies like Shell, Eni, and ExxonMobil have divested or are selling assets to focus on regions with more stable operating conditions.
Sector shifts and growing African financial involvement
Gbenga Komolafe, CEO of Nigeria's Upstream Petroleum Regulatory Commission (NUPRC), pointed to a wave of recent divestments, including Eni’s sale of Nigerian Agip Oil Company to Oando and ExxonMobil’s sale of Mobil Producing Nigeria to Seplat Energy. Shell’s attempted sale of onshore assets to Renaissance Africa Energy stalled due to regulatory challenges.
Rand Merchant Bank, a division of South Africa’s FirstRand Bank, acted as the sole financial adviser, reflecting the increasing role of African financial institutions in large-scale transactions on the continent.
Revitalizing Africa's oil assets
Founded by Ufoma Immanuel in 2020, Chappal Energies is dedicated to revitalizing aging oil and gas assets in Africa, enhancing operational efficiency, and developing critical infrastructure.
The latest acquisition, which follows the company’s $860 million purchase of TotalEnergies' onshore oil assets in Nigeria, marks another significant step in expanding its energy portfolio.
Immanuel, who brings extensive experience in investment banking and private equity, has been instrumental in guiding Chappal Energies to unlock Africa's vast oil and gas potential.
Prior to founding Chappal, he spearheaded the spin-off of Energy Link Infrastructure from Eroton, where he developed an alternative evacuation system for the OML 18 JV crude oil, further cementing his expertise in the sector.
