Equinor Completes $1.2 Billion Asset Sale, Ends 31-Year Partnership with Nigeria

Equinor, the Norwegian energy giant, has concluded the sale of its oil assets in Nigeria, officially marking the end of a nearly 31-year business partnership with the country. The transaction, which was finalized on December 6, 2024, is valued at up to $1.2 billion, with $710 million as the purchase price and the remainder in contingent payments.

This sale is part of Equinor’s strategy to optimize its international portfolio, allowing the company to refocus on its more competitive projects for long-term production and profitability. Philippe Mathieu, Equinor’s executive vice president for international exploration and production, expressed appreciation for the contributions made by Nigeria and its employees over the years. He also highlighted the company’s plans to deepen investments in countries where it can add the most value.

The divestment, first announced in 2023, involves assets that collectively averaged 18,700 barrels of oil per day during the first three quarters of 2024. The completion of the sale is expected to positively impact Equinor’s cash flow in the fourth quarter of 2024.

One of the key components of the deal is the transfer of a 53.85% ownership stake in Oil Mining Lease (OML) 128 to Chappal Energies, which includes a 20.21% interest in the Agbami oil field. Agbami, one of Nigeria’s largest and most productive deep-water fields, has been in production since 2008 and has already yielded over one billion barrels of oil. In addition, Chappal Energies will take over operatorship of OML 129, which holds significant potential due to its discoveries, including the Nnwa, Bilah, and Sehki fields, with Nnwa-Doro being a major gas resource that has been underutilized for over 20 years despite its vast reserves.