Table of Contents
Key Points
- Chappal Energies, led by Ufoma Immanuel, seeks new investors to support its expansion following acquisitions in Nigeria’s oil sector.
- The company’s $860 million acquisition of TotalEnergies’ stake in key Nigerian oil assets strengthens its position in Africa’s energy industry.
- Chappal aims to increase production to 77,000 barrels per day in three years, focusing on revitalizing aging assets and optimizing current operations.
Chappal Energies, a Mauritius-based energy company led by Nigerian business executive Ufoma Immanuel, is seeking new investors to support its ongoing expansion following a series of significant acquisitions in Nigeria.
The company’s most recent deal includes an $860 million acquisition of TotalEnergies SE’s 10 percent stake in 15 Oil Mining Leases (OML) and key export terminals at Forcados and Bonny, part of the Shell Petroleum Development Company Joint Venture (SPDC JV).
“We’ll be expanding our equity base,” said Ufoma Immanuel, Chappal’s managing director. “We need partnerships, and some of those will be on the capital side.”
The acquisition is just one of several major transactions that have positioned Chappal Energies as a rising force in Africa’s oil and gas industry.
In July, Chappal completed a $1.2 billion acquisition of Equinor ASA’s Nigerian assets, adding approximately 20,000 barrels per day of production to its portfolio.
This acquisition was funded in part by a $120 million contribution from Mauritius Commercial Bank Group (MCB), which provided part of a $360 million bridge facility. Shortly after, Chappal sold a 5.14 percent stake to Aradel Holdings for an undisclosed sum.
African oil deals surge amid global shift
These acquisitions are part of a growing trend of African producers acquiring onshore oil assets from global energy firms. Companies like ExxonMobil and Eni are increasingly focusing on deep-water projects due to challenges in theft and infrastructure in Nigeria’s onshore fields.
Chappal Energies is poised to significantly boost its oil production. The company plans to raise its output to 77,000 barrels per day within three years through both acquisitions and optimization of its current assets. In 2023, the TotalEnergies assets contributed 14,000 barrels per day to Chappal’s output.
Immanuel leads expansion efforts into new markets
Founded in 2020 by Ufoma Immanuel, Chappal Energies has quickly made a mark in Africa’s oil and gas sector. The company focuses on revitalizing aging oil and gas assets, enhancing operational efficiency, and developing critical infrastructure.
Immanuel, a former investment banker with extensive private equity experience, previously led the spin-off of Energy Link Infrastructure from Eroton, where he helped develop an alternative evacuation system for the OML 18 Joint Venture.
“Our focus is on maximizing value from aging assets and driving Africa’s energy resurgence,” Immanuel said, highlighting the company’s approach to capitalizing on opportunities left by global energy giants retreating from the continent.
Chappal’s acquisitions and planned equity sales signal the company’s ambition to further expand its presence in Nigeria and other sub-Saharan African markets. Immanuel noted that future equity sales would depend on shareholder decisions, but the company remains committed to driving Africa’s energy sector forward.
