Chappal Energies has announced the closing of the acquisition of Equinor Nigeria Energy Company (ENEC), which holds a 53.85% ownership in oil and gas lease OML 128, including the unitised 20.21% stake in the Agbami oil field, operated by Chevron. 

Since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil, creating value for the Nigerian society and the various stakeholders. Chappal Energies will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki). 

The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria. This field development opportunity will unlock a world class asset that has been stranded for over 20 years and is poised to bring substantial benefits to the many stakeholders, including shareholders, employees, local communities and the national economy while supporting the fulfilment of the Nation’s objectives as articulated in the Nigerian decade of gas objective. 

Equinor and Chappal Energies entered into an agreement on 29th November 2023 with regards to the Acquisition for an undisclosed consideration. 

Ufoma Immanuel, Managing Director of Chappal Energies commented: 
“We are proud to announce this milestone achievement as an indigenous company acquiring a stake in an offshore production sharing contract (PSC) through a competitive process. This acquisition aligns with our objectives of securing existing production alongside development opportunities. This acquisition not only brings immediate production and cashflow benefits but also reinforces our vision of building an upstream company capable of driving transformative change in Africa’s energy sector. We remain dedicated to contributing to Nigeria’s economic prosperity and the development of its energy landscape through responsible and efficient operations.” 

Rand Merchant Bank (“RMB”), a division of First Rand Bank Limited, acted as the sole financial advisor to Chappal Energies on the Acquisition.

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