Nigeria’s independent oil producer, Chappal Energies, has finalised the $1.2 billion acquisition of Norwegian oil giant, Equinor Nigeria Energy Company (ENEC).

The development, which marks the exit of the organisation from Nigeria, would see Chappal control a 53.85 per cent ownership in oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, which is operated by Chevron.

In the past few years, there have been over $7 billion divestment in the oil and gas sector in Nigeria as independent producers position themselves to lead oil and gas production in the country.

Since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil, creating value for Nigerian society and the various stakeholders. With the exit, Chappal Energies would now officially assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries such as 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.

Equinor and Chappal Energies had, last month, entered into an agreement with regard to the acquisition for an undisclosed consideration.

Managing Director of Chappal Energies, Ufoma Emmanuel, described the development as an achievement, as an indigenous company acquired a stake in an offshore Production Sharing Contract (PSC) through a competitive process.