Nigeria: Eni and Equinor sell oil assets to Oando and Chappal

Nigeria approves the sale of Eni and Equinor oil assets, enabling Oando and Chappal to strengthen their local presence. These transactions mark a significant turning point in the country's oil sector.

Share:

Divestissement d'actifs pétroliers Nigeria

Nigerian regulators recently approved agreements for the sale of oil assets by Eni and Equinor. These agreements enable local players Oando and Chappal Energies to acquire strategic oil assets, strengthening the position of Nigerian companies in the country’s energy sector. In fact, Oando plans to double its production with the acquisition of Eni.
The head of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, has confirmed the approval of the sale by Eni subsidiary Nigerian Agip Oil Company to Oando. This transaction, initially announced for September 2023, had been delayed due to discussions on the right of first refusal exercised by the Nigerian National Petroleum Company (NNPC). With this acquisition, Oando is set to become one of Nigeria’s largest oil producers.

A new era for the Nigerian oil industry

Komolafe also announced the approval of the transaction between Equinor and Chappal Energies, operated via Chappal’s Odinmim project vehicle. The sale includes Equinor’s 53.85% interest in block OML 128, including a 20.21% interest in the Agbami oil field, operated by Chevron.
The approved transactions, which still await final ministerial approval, represent a major turning point for the Nigerian oil sector, with international oil companies increasingly withdrawing in favor of local players.

Challenges and opportunities for local businesses

Nigeria’s oil production, currently falling short of its capacity of over 2 million barrels per day (b/d) due to oil theft, sabotage in the Niger Delta, lack of investment and slow exploration, should benefit from these divestments. In May, the country’s production stood at 1.47 million b/d, according to the Platts OPEC Survey by S&P Global Commodity Insights.
Local oil companies such as Seplat, Oando and Chappal believe they can increase Nigerian production by 200,000 b/d in two years, provided government approvals are accelerated. Seplat, in particular, is poised to increase production to 146,000 barrels of oil equivalent per day (boe/d) following the acquisition of ExxonMobil’s assets, although this transaction faces regulatory and legal hurdles.

Future prospects

The approval of the asset disposals by Eni and Equinor is seen as a positive sign for the Nigerian oil industry. By transferring these assets to local companies, Nigeria hopes to boost domestic production and improve resource management. Oando, for example, plans to double its current production to 50,000 boe/d through the acquisition of Eni’s interests in onshore OMLs 60, 61, 62 and 63, as well as stakes in the Brass terminal and onshore exploration concessions.
This transition could also lead to better management of oil spills and clean-ups, a crucial point raised by regulators. Local companies, while facing significant challenges, express optimism about their ability to revitalize the Nigerian oil sector.
Although complex and time-consuming to finalize, these transactions could mark the beginning of a new era for the Nigerian oil industry, characterized by greater autonomy and more efficient exploitation of the country’s resources.

Serbia has secured a new 30-day reprieve from the application of US sanctions targeting NIS, operator of the country’s only refinery, which is majority owned by Gazprom.
OMS Energy Technologies Inc. reports solid financial results for 2025, driven by marked revenue growth, improved gross margin and a reinforced cash position in a shifting market.
Five employees injured in an explosion at the Pascagoula refinery are suing Chevron for negligence, seeking significant compensation and alleging major breaches of safety regulations.
South Korea and Japan are reinforcing coordination on strategic stocks and oil logistics as growing dependence on Gulf imports and geopolitical tensions affect the Asian market.
Two separate strikes in the Vaca Muerta region threaten to disrupt oil and gas production after historic records, with unions protesting layoffs and unpaid wages in a rapidly expanding sector.
US refiner Phillips 66 posted quarterly earnings above expectations, driven by high utilisation rates and lower maintenance costs across its facilities.
The advisory opinion issued by the International Court of Justice increases legal exposure for states and companies involved in the licensing or expansion of oil and gas projects, according to several international law experts.
US oil company Chevron has received new approval from American authorities to relaunch its operations in Venezuela, halted since May following the revocation of its licence under the Trump administration.
Kazakhstan adopts an ambitious roadmap to develop its refining and petrochemical industry, targeting 30% exports and $5bn in investments by 2040.
Turkey has officially submitted to Iraq a draft agreement aimed at renewing and expanding their energy cooperation, now including oil, natural gas, petrochemicals and electricity in a context of intensified negotiations.
The Dangote refinery complex in Nigeria is planning a scheduled forty-day shutdown to replace the catalyst and repair the reactor of its gasoline production unit, starting in early December.
Indonesia Energy plans to drill two new wells on the Kruh block in Indonesia before the end of 2025, following a 60% increase in proven reserves thanks to recent seismic campaigns.
CanAsia Energy Corp. confirms it has submitted a bid for oil and gas exploration and production in Thailand, reinforcing its international strategy within a consortium and targeting a block in the 25th onshore round.
The decrease in US commercial crude oil stocks exceeds expectations, driven by a sharp increase in exports and higher refinery activity, while domestic production shows a slight decline.
Pacific Petroleum and VCP Operating finalise the $9.65mn acquisition of oil assets in Wyoming, backed by a consortium of Japanese institutional investors and a technology innovation programme focused on real-world asset tokenisation.
Repsol's net profit fell to €603mn in the first half, impacted by oil market volatility and a massive power outage that disrupted its activities in Spain and Portugal.
A USD 1.1 billion refinery project in Ndola, signed with Fujian Xiang Xin Corporation, aims to meet Zambia's domestic demand and potentially support regional exports.
The Organization of the Petroleum Exporting Countries (OIES) confirmed its Brent price forecast at 69 USD/b in 2025 and 67 USD/b in 2026, while adjusting its 2025 surplus forecast to 280,000 barrels per day.
PermRock Royalty Trust has declared a monthly distribution of 395,288.31 USD, or 0.032491 USD per trust unit, payable on August 14, 2025, based on production revenues from May 2025.
Portuguese group Galp Energia announced an adjusted net profit of €373 million for Q2 2025, a 25% increase from the previous year, driven by higher hydrocarbon production in Brazil.