Aradel Holdings has announced plans to acquire a 5.14% stake in Chappal Energies Mauritius Limited, a company investing in high-value and established upstream energy projects across Africa.
This announcement comes nearly two months after Aradel’s public listing on the Nigerian Exchange (NGX) at N702.69 per share, following over a decade on the NASD OTC market.
Before its listing, Aradel announced plans to acquire Nigeria’s Olo and Olo West fields from TotalEnergies and NNPC for $16 million, plus $3.5 million in deferred payments.
Building on this, the company has announced its intent to acquire a minority stake in Chappal Energies in a statement filed with the NGX on 10th December 2024.
The filing stated:
“Aradel Holdings Plc (‘Aradel’ or ‘the Company’) has entered into an agreement to acquire a 5.14% equity interest in Chappal Energies Mauritius Limited (‘Chappal’).”
This move highlights Aradel’s ongoing efforts to diversify its portfolio within the energy sector.
Backstory
On December 6, 2024, Chappal announced the acquisition of Equinor Nigeria Energy Company Limited (ENEC), which holds a 53.85% stake in Oil Mining Lease (OML) 128. This stake includes a unitized 20.21% interest in the Agbami oil field, operated by Chevron.
- Since production began in 2008, the Agbami field has produced over one billion barrels of oil, contributing significant value to Nigeria and its stakeholders.
- As part of the deal, Chappal will also take over as the operator of OML 129, which includes key prospects and undeveloped discoveries such as Nnwa, Bilah, and Sehki.
- The Nnwa discovery is part of the larger Nnwa-Doro gas field, a major resource with the potential to deliver significant value to Nigeria’s energy landscape.
- Earlier, on July 17, 2024, Chappal and TotalEnergies announced a Sale and Purchase Agreement (SPA) for Chappal to acquire a 10% stake in the SPDC Joint Venture (JV).
This transaction has reached critical milestones, including ministerial approval and NNPC’s consent to the Joint Operating Agreement, with the parties now working to finalize the closing process.
Comments from the MD/CEO
According to the MD/CEO of Aradel Holdings PLC, Mr. Adegbite Falade, the acquisition aligns with the company’s strategy to diversify its asset base, enhance its gas expertise, and gain access to offshore basins through low-risk approaches.
“We recognize the strategic role of gas in Nigeria’s energy future and are pleased to expand our equity holding in this critical resource,” Falade stated.
He further remarked, “We are committed to unlocking the significant value inherent in these assets, which will greatly benefit the country. Aradel is eager to bring its proven execution capabilities to support Chappal’s development of these opportunities.”
With Aradel trading at N466 per share, the announcement of its minority stake in Chappal may spark a positive response from the market.