By Adedapo Adesanya
Chappal Energies has agreed to purchase TotalEnergies’ stake in the country’s oil assets for $860 million.
According to Bloomberg, the deal includes a 10 per cent interest in 15 oil mining leases and the Forcados and Bonny export terminals, part of the Shell Petroleum Development Company (SPDC) joint venture.
Chappal’s financing will be provided by an entity related to TotalEnergies or a financial institution selected by the French company, according to a statement cited by Bloomberg.
Trading house Trafigura and a syndicate of international banks are also providing funds.
The deal is expected to close by December 31.
This development is coming after Equinor ASA chose the little-known Nigerian company, Chappal Energy, as the preferred buyer of its stake in one of the country’s largest deep-water oil fields, Agbami as reported in September 2023.
The Norwegian energy giant was trying to sell its 20.2 per cent interest in the Agbami field – joining other international producers such as Shell Plc, Exxon Mobil Corporation and Eni SpA in looking to offload assets in Africa’s biggest crude producer, Nigeria.
In January of the same year, Equinor launched the sale of its stake in an offshore Nigerian oilfield, joining a retreat by Western energy firms from Nigeria as they focus on newer and more profitable operations.
Chappal Petroleum unsuccessfully bid for Nigerian shallow-water oil blocks that Exxon agreed to sell to Seplat in February 2022.
This acquisition will mean that the relatively unknown company is becoming a challenger in the Nigerian energy industry.