The Norwegian company also revealed its exit from Azerbaijan, with the divestments, first disclosed in 2023 and finalized in recent weeks, set to bolster cash flow in the fourth quarter. This move aligns with Equinor’s broader strategy to optimize its international portfolio.
“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,” the company stated, without offering further specifics.
Equinor has previously outlined plans to increase its international output by 100,000 barrels of oil equivalent per day (boed) by 2030, driven by new fields coming online in Brazil, the UK, and the United States.
The company did not elaborate on how market fluctuations and other factors could impact the contingent payments.
In Azerbaijan, Equinor divested a 7.27 per cent stake in the Azeri Chirag Gunashli (ACG) field, an 8.71 per cent interest in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, and a 50 per cent stake in the Karabagh project, with a combined value of $745 million. The assets were sold to Azerbaijan’s SOCAR and India’s ONGC.
Equinor’s net production in Azerbaijan and Nigeria averaged 24,600 and 17,700 barrels of oil equivalent per day (boed), respectively, during the first three quarters of 2024.
Equinor has had a presence in Nigeria since 1992, playing a pivotal role in the development of the country’s largest deep-water field, Agbami. Since production began in 2008, the Agbami field has produced over 1 billion barrels of oil, benefiting both Equinor’s partners and the Nigerian economy.
“Nigeria has been an important part of Equinor’s international portfolio over the past 30 years. This transaction realizes value and aligns with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas. Chappal Energies is a committed Nigerian-owned energy company with the ambition to develop the assets further, contributing to the Nigerian economy for years to come,” said Nina Koch, Equinor’s Senior Vice President for Africa Operations, in a statement issued in November 2023.
Ufoma Immanuel, Managing Director of Chappal Energies, expressed excitement about taking over Equinor’s legacy: “We are excited to take over the baton from Equinor after three decades of enduring legacy. Value creation, environmental stewardship, and community engagement are at the heart of everything we do, and our social and development impact will be the most important measurement of our success. We are confident in our ability to make a lasting impact and are committed to fostering sustainable growth and contributing to Nigeria’s economic prosperity now and in the future.”
Chappal Energies is an energy company focused on unlocking latent value in Nigeria and Africa’s oil and gas resources. The company is committed to revitalizing aging assets, improving operational efficiency, enhancing water management, optimizing capital expenditures, and replacing infrastructure to ensure long-term sustainability.
