Olayomi Koiki
A Norwegian oil and gas company Equinor (EQNR.OL) has finalised the sale of its assets in Nigeria and Azerbaijan for a total of up to $2 billion, marking the conclusion of its 30-year operations in both countries.
Equinor announced the completion of the divestments on Monday, a move first disclosed in 2023, Reuter news agency reported.
The divestments, which were finalised in recent weeks, are expected to enhance Equinor’s cash flow in the fourth quarter. They align with the company’s strategy to optimise its international portfolio.
“The exits enable investments to deepen further in countries where Equinor can add the most value and build a more focused and robust international portfolio,” the company said without providing further details.
Equinor aims to increase its international output by 100,000 barrels of oil equivalent per day (boed) by 2030, focusing on new fields in Brazil, the UK, and the US.
In Nigeria, Equinor sold a 20.21% stake in the Agbami oil field, operated by Chevron (CVX.N), to Chappal Energies for up to $1.2 billion, consisting of $710 million in cash and the rest in contingent payments.
The company did not specify how market prices or other factors might influence those contingent payments.
In Azerbaijan, it sold its 7.27% stake in the Azeri Chirag Gunashli (ACG) field, an 8.71% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, and a 50% stake in the Karabagh project to Azerbaijan’s SOCAR and India’s ONGC for $745 million.
Equinor’s net production in the first three quarters of 2024 was 24,600 boed in Azerbaijan and 17,700 boed in Nigeria.
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