Equinor Completes Assets Sale, Ends 31-Year Business Partnership With Nigeria

After the completion of the sale of its oil assets, Norwegian energy giant Equinor made the decision to end its nearly 31-year business partnership with Nigeria. &nbsp,

The company announced on Monday that the sale of its assets would close on December 6, 2024, according to a statement released by the company.

With this departure, Equinor realizes the value of its international portfolio and implements its strategy to focus on it. In addition, with recent purchases and investments in its competitive projects, Equinor seeks to maintain long-term production and profitability, according to Philippe Mathieu, executive vice president for international exploration and production.

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Up to $1.2 billion was spent on the transaction, which included contingent payments and a $ 720 million purchase price.

“Nigeria has long been a significant member of our international portfolio. We have contributed a significant amount to Equinor and society as a whole through our partnerships and suppliers. I want to thank Nigeria and our employees there for their tireless efforts over the years, and I wish them the best of luck as they move into their careers,” Mathieu goes on.

In 2023, the first official announcement was that Nigerian assets had been divested and that operations had been discontinued.

The global oil company claimed that the sale of the assets was in line with the company’s plan to optimize its oil and gas portfolio.

The exits make it possible for investments to grow even further in the nations where Equinor can add the most value and establish a more focused and robust international portfolio, he continued.

The total equity production from the assets has been on average 18, 700 barrels of oil per day, respectively, in the first three quarters of 2024.

The company predicted that the company’s cash flow for the fourth quarter of 2024 will be positively affected by the closing of these transactions.

A unitized 20.21 per cent interest in Chevron’s exploding Agbami oil field is included in the agreement, which grants Chappal Energies a 53.85 per cent ownership stake in the oil mining lease (OML) 1288.

The Agbami field is one of Nigeria’s largest deep-water oil fields, which began production in 2008 and has produced over one billion barrels of oil to date, solidifying its importance as one of Nigeria’s most productive offshore assets.

In addition to the acquisition, Chappal Energies will assume operatorship of OML 129, an asset with considerable potential.

Source: Channels TV