Norwegian energy group Equinor announced on Wednesday (November 29) that it has agreed to sell its Nigerian business, including its stake in the Agbami oil field, to Nigerian-owned Chappal Energies for an undisclosed amount.

The group will sell Equinor Nigeria Energy Company (ENEC), which holds a 53.85% ownership in oil and gas lease OML 128, including the unitised 20.21% stake in the Agbami field, Nigeria’s largest deep-water oil field, operated by Chevron (US). Chevron holds a 67.30% interest and Prime 127 the remaining 12.49%.

"This transaction realises value and is in line with Equinor's strategy to optimise its international oil and gas portfolio and focus on core areas," said Nina Koch, Equinor's senior vice president for Africa operations.

"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.”

Agbami, which lies 110 km off the Nigerian coast in water depths of 1,500 metres, has accounted for about 7% of Nigeria’s oil output this year. It has been developed using subsea wells and is the world’s largest floating production, storage, and offloading (FPSO) vessel, according to Equinor’s website.

The FPSO can store up to 2.2mn bbl of oil. The field has produced more than 1bn bbl of oil since production started in 2008.

Equinor's presence in Nigeria dates back to 1992, the company said in a statement, noting the closing of the sale to Chappal is subject to certain conditions including all regulatory and contractual approvals.

Equinor reportedly began selling its interest in an offshore Nigeria oilfield in January, joining other Western energy companies Shell (UK), Exxon Mobil (US), and Eni (Italy) exiting to the country to concentrate on more innovative and lucrative projects.

“We are excited to take over the baton from Equinor after three decades of enduring legacy,” commented Ufoma Immanuel, Managing Director of Chappal Energies.

“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.”