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Norway’s Equinor ASA, is ready to promote its stake in Agbami, one in every of Nigeria’s largest deep-water oil fields, to Chappal Power, in keeping with folks acquainted with the scenario.
A Bloomberg report on Monday revealed that the vitality big is making an attempt to promote its 20.2 % stake within the Agbami subject, becoming a member of different multinational producers like Shell Plc, Exxon Mobil Company, and Eni SpA in attempting to unload property in Africa’s largest crude producer.
Equinor started promoting its curiosity in an offshore Nigeria oilfield in January, in keeping with three trade sources, becoming a member of different Western vitality firms that have been leaving the nation of West Africa to focus on extra revolutionary and profitable tasks.
The Firm then employed Commonplace Chartered Financial institution to supervise the sale process, which had the potential to boost $1 billion.
In accordance with Equinor’s web site on the time, by means of its possession of a stake in Chevron’s Agbami subject, the corporate was entitled to web manufacturing of about 25,000 barrels of oil equal per day.
Offshore oil and fuel operations in Nigeria are nonetheless worthwhile due to their elevated dimension, improved safety, and beneficial monetary phrases supplied by the federal government.
Equinor, which has been working in Nigeria since 1992, additionally owns a 53.85 % share within the exploration licence OML 129, in keeping with its web site.
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Nonetheless, the report revealed that Chappal Energies Mauritius Restricted has now emerged because the favoured purchaser of Equinor’s curiosity within the asset, which is operated by Chevron Company and produces about 100,000 barrels of oil a day, the folks mentioned.
5 firms together with Prime Oil & Fuel Cooperatief UA, which already has a 12.5 % share within the Agbami subject, submitted binding bids, in keeping with the sources.
Agbami has accounted for about 7 % of Nigeria’s oil output this yr and solely the Shell-operated Bonga subject at the moment produces extra oil within the nation.
A gross sales settlement has not but been accomplished, and Chappal Energies should nonetheless increase funds to finance the transaction, in keeping with the sources, who didn’t specify the acquisition value. Equinor, Chappal Energies, and Prime O&G all declined to remark.
In accordance with a report, Chappal Petroleum unsuccessfully bid for Nigerian shallow-water oil blocks that Exxon agreed to promote to Seplat in February 2022.
Agbami is positioned 110 kilometres off the Nigerian coast in water depths of 1,500 metres. It had been developed utilizing subsea wells and is the world’s largest floating manufacturing, storage and offloading (FPSO) vessel.
The FPSO can retailer as much as 2.2 million barrels of oil and shall be on location for greater than 20 years. Equinor additionally operates two exploration licences—OMLs 128 and 129—with a 53.85 % share in each. Six wells have been drilled in each, with two discoveries made.
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