Aradel Holdings acquires 5.14-percent equity stake in Chappal Energies to strengthen its position in Nigeria’s energy sector

Oluwatosin Racheal Alabi -

Key Points

  • Aradel Holdings acquired 5.14 percent equity in Chappal Energies, securing access to key Nigerian oil assets.
  • The investment includes a stake in Agbami Field, Nigeria’s second-largest liquid hydrocarbon producer.
  • Agbami has produced over 1 billion barrels of condensate since 2008, offering high-value resources.

Aradel Holdings Plc, a major Nigerian oil and gas company listed on the Nigerian Exchange (NGX) and chaired by Ladi Jadesimi, has acquired a 5.14 percent equity stake in Chappal Energies Mauritius Limited, enhancing its presence in Nigeria’s thriving energy sector. This acquisition provides Aradel with access to key oil and gas assets, including a share in the lucrative Agbami Field and the promising Nnwa-Doro oil discovery.

Aradel strengthens asset base to drive Nigeria’s energy future

The deal includes significant oil and gas holdings, such as Chappal Energies’ 53.85 percent stake in Equinor Nigeria Energy Company Limited (ENEC), the operator of Oil Mining Lease (OML) 128, which contains the Agbami Field. The Agbami Field, operated by Chevron, is Nigeria’s second-largest single liquid hydrocarbon producer, delivering 89,000 barrels of condensate per day as of November 2024, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Since its inception in 2008, Agbami has produced over 1 billion barrels of condensate, solidifying its role as a cornerstone of Nigeria’s oil industry.

In addition to Agbami, Aradel's acquisition provides access to the emerging Nnwa-Doro development in OML 129, a highly prospective asset with a cluster of undeveloped discoveries, including Nnwa, Bilah, and Sekhi. These discoveries hold significant future potential for oil and gas production.

Gbite Falade, Managing Director and CEO of Aradel Holdings, emphasized the strategic importance of the acquisition, saying:
“This deal aligns with our vision of diversifying our asset base and gaining access to offshore basins using low-risk approaches. We recognize the critical role of these assets in Nigeria’s energy future and are committed to maximizing their value.” Falade also stressed the company’s commitment to working with Chappal Energies to develop these resources for the benefit of Nigeria’s national economy and energy security.

Aradel’s aggressive growth strategy and market expansion

Aradel Holdings’ recent expansion activities highlight its ambitious growth strategy. In October 2024, the company successfully listed on the NGX, boosting its market capitalization to N3.053 trillion ($1.9 billion) with 4.34 billion shares priced at N702.69 ($0.43) per share. During the same period, Aradel completed the acquisition of the Olo and Olo West hydrocarbon fields just six months apart.

Aradel also plays a prominent role in Renaissance Africa, a consortium of leading Nigerian oil companies, including NDWestern, First E&P, Waltersmith, and Petrolin. The company, founded as part of Nigeria's push to increase indigenous participation in its oil and gas sector, has established itself as a significant player in the industry.

Aradel focuses on acquiring high-value assets and driving production growth through efficient and sustainable practices, ensuring the continued development of Nigeria’s energy sector. This acquisition of Chappal Energies’ equity stake further strengthens Aradel’s portfolio and operational capacity in both offshore and onshore basins, positioning the company to remain at the forefront of Nigeria’s energy industry as the country continues to maximize the value of its energy resources.