Norwegian energy giant Equinor has decided to end its business in Nigeria after 31 years, selling off its assetsThe company sold its assets, which include an oil field, to the Nigerian Indigenous energy company Chappal EnergiesChappal Energies has promised to unlock one of Nigeria’s oil and gas assets that has been stranded for over two decades
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Norwegian state-owned multinational energy company Equinor has announced its exit from Nigeria after 31 years of operations.
The company sold its Nigerian assets, including an oil field, to Chappal Energies, a Nigerian indigenous energy company, in a deal worth $1.2 billion.
Equinor decides to leave Nigeria
Photo credit: Muhannad Fala’ah
Source: Getty Images
In a statement, Equinor cited strategic realignment as the reason for its decision to divest from Nigeria.
Reuters reports that the company said the decision is part of its broader efforts to streamline its international portfolio and focus on other markets deemed critical to its long-term objectives.
Read also
Stellantis, Chinese firm CATL plan $4bn battery plant in Spain
Part of the statement reads:
“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.”
Aside from Nigeria, Equinor also sold its assets in Azerbaijan.
Nigerian oil company tasks over
Speaking on the deal, Chappal Energies, the new owner of Equinor’s Nigerian assets, expressed readiness to take up the challenges.
The Agbami oil field operated by Chevron, one of the assets inherited by Chappal Energies, has been idle for years.
ThisDay reports that the company promised that the deal would unlock one of Nigeria’s oil and gas assets, which had been stranded for over two decades.
It said:
“Chappal Energies is pleased to announce 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 per cent stake in the Agbami oil field, operated by Chevron.
Read also
Nigerian firm Chappal Energies acquires another oil company in landmark deal
“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”
Equinor’s departure adds to a growing trend of international companies scaling back their operations in Nigeria.
Netflix denies plan to leave Nigeria
In a related development, the leading streaming service Netflix has denied that it plans to leave Nigeria after six years.
The reports of Netflix’s exit sparked anxiety among Nigerians and filmmakers alike.
The rumours started after popular filmmaker Kunle Afolayan claimed that some commissioned projects were cancelled.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Henzodaily.ng