Norwegian energy giant Equinor has officially ended its 31-year business relationship with Nigeria, completing the sale of its oil and gas assets in the country for up to $1.2 billion. The transaction, finalized on December 6, 2024, includes a purchase price of $710 million and contingent payments.
Philippe Mathieu, Equinor’s executive vice president for international exploration and production, stated that the decision aligns with the company’s strategy to optimize its oil and gas portfolio. “With this exit, we realize the value and focus on competitive projects that sustain long-term production and profitability,” Mathieu said.
The divestment transfers a 53.85% ownership stake in Oil Mining Lease (OML) 128 and a unitized 20.21% interest in the Agbami field—one of Nigeria’s largest deep-water oil fields—to Chappal Energies. Additionally, Chappal Energies will assume operatorship of OML 129, a promising block that includes the Nnwa, Bilah, and Sehki discoveries.
The Agbami field, which began production in 2008, has delivered over one billion barrels of oil, solidifying its status as a cornerstone of Nigeria’s offshore energy production. Meanwhile, the Nnwa-Doro gas field, part of the assets sold, represents untapped potential, with vast reserves that have remained stranded for over two decades.
Equinor’s exit from Nigeria is part of a broader effort to deepen investments in regions where the company can add the most value. The company’s international portfolio optimization is expected to bolster its cash flow for the fourth quarter of 2024.
“Nigeria has been an important country in our portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large. I thank our employees and wish them success in their professional journeys,” Mathieu added.
The deal underscores Nigeria’s continuing importance in the global energy landscape while highlighting the strategic shift by international oil companies to focus on high-value regions.
