Table of Contents
Key Point
- Chappal Energies acquires TotalEnergies’ onshore oil assets in Nigeria for $860 million, significantly expanding its portfolio.
- The deal involves a 10% interest in 15 Oil Mining Leases (OMLs) and two key export terminals, with completion by December 31, 2024.
- Financing includes a TotalEnergies entity and international banks like Trafigura, boosting Chappal Energies’ reserves and balance sheet.
Chappal Energies, a Mauritius-based energy company led by Nigerian business executive Ufoma Immanuel, has reached a monumental agreement to acquire the onshore oil assets of French oil giant TotalEnergies in Nigeria for $860 million.
This strategic acquisition, finalized after extensive negotiations, highlights the ongoing exit of major oil companies from onshore operations in the West African nation.
The $860 million deal will be financed by a TotalEnergies entity and a syndicate of international banks, including Trafigura. This acquisition significantly boosts Chappal Energies’ asset portfolio, adding substantial reserves to its balance sheet.
Transaction details and stake distribution
The deal, expected to close by December 31, 2024, involves Chappal Energies acquiring a 10 percent interest in 15 Oil Mining Leases (OMLs) and two key export terminals, Forcados and Bonny, which are part of the Shell Petroleum Development Company Joint-Venture (SPDC JV).
Within this joint venture, the Nigerian National Petroleum Corporation Limited (NNPCL) holds a 55 percent stake, Shell operates with a 30 percent stake, and Nigerian Agip Oil Company (NAOC) has a 5 percent stake.
In addition, Chappal Energies will obtain a 10 percent participating interest in three other gas-producing OMLs (OML 23, OML 28, and OML 77) within the SPDC JV. TotalEnergies will maintain an economic interest in these licenses, which supply 40 percent of Nigeria’s LNG gas. Chappal Energies will also secure rights to the undeveloped oil reserves within these OMLs.
Ufoma Immanuel’s Chappal Energies transforms African Energy landscape
Founded by Ufoma Immanuel in 2020, Chappal Energies focuses on revitalizing aging oil and gas assets in Africa, improving operational efficiency, and developing infrastructure. The company recently acquired Nigerian assets from Norway’s Equinor ASA, reinforcing its role in the region’s energy sector.
Immanuel, with a background in investment banking and private equity, has driven Chappal Energies to unlock Africa’s oil and gas potential. Before Chappal, he led the spin-off of Energy Link Infrastructure (ELI) from Eroton, developing an alternative evacuation system for the OML 18 JV crude oil.
Under Immanuel’s leadership, Chappal Energies’ subsidiary, Project Odinmin, recently took over Equinor’s operations in Nigeria, gaining ownership of offshore infrastructure and rights to the OML 128 and OML 129 fields. This acquisition highlights Chappal Energies’ commitment to growth and excellence in Africa’s energy market.
