BREAKING NEWS: CHAPPAL BUYS TOTALENERGIES NIGERIA STAKE FOR $860M

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Olori Uwem

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Mar 18, 2024
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BREAKING NEWS: CHAPPAL BUYS TOTALENERGIES NIGERIA STAKE FOR $860M

Chappal Energies has agreed to purchase TotalEnergies’ stake in Nigeria's oil assets for $860 million. The deal includes a 10% interest in 15 oil mining leases and the Forcados and Bonny export terminals, which are part of the Shell Petroleum Development Company (SPDC) joint venture. Financing for Chappal’s acquisition will be provided by an entity related to TotalEnergies or a selected financial institution, with additional funding from trading house Trafigura and a syndicate of international banks. The transaction is expected to be finalized by December 31.

This acquisition follows Chappal's selection as the preferred buyer for Equinor ASA's 20.2% stake in the Agbami oil field, marking another significant step in Chappal's emergence as a key player in Nigeria's energy sector. Western energy firms, including Shell, Exxon Mobil, and Eni, have been retreating from Nigeria, focusing on more profitable ventures elsewhere. Chappal's recent bids, including an unsuccessful attempt to acquire shallow-water oil blocks from Exxon, highlight its growing ambitions in the industry.